autodesk-(nasdaq:adsk)-shareholders-have-enjoyed-a-whopping-440%-share-price-gain

Autodesk (NASDAQ:ADSK) Shareholders Have Enjoyed A Whopping 440% Share Price Gain

NASDAQ:ADSK) share price has soared 440% over five years. If that doesn’t get you thinking about long term investing, we don’t know what will. On top of that, the share price is up 18% in about a quarter. But this could be related to the strong market, which is up 16% in the last three months.” data-reactid=”28″ type=”text”>Buying shares in the best businesses can build meaningful wealth for you and your family. While the best companies are hard to find, but they can generate massive returns over long periods. To wit, the Autodesk, Inc. (NASDAQ:ADSK) share price has soared 440% over five years. If that doesn’t get you thinking about long term investing, we don’t know what will. On top of that, the share price is up 18% in about a quarter. But this could be related to the strong market, which is up 16% in the last three months.

Check out our latest analysis for Autodesk ” data-reactid=”29″ type=”text”> Check out our latest analysis for Autodesk

Given that Autodesk only made minimal earnings in the last twelve months, we’ll focus on revenue to gauge its business development. Generally speaking, we’d consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

In the last 5 years Autodesk saw its revenue grow at 8.3% per year. That’s a fairly respectable growth rate. Arguably it’s more than reflected in the very strong share price gain of 40% a year over a half a decade. We usually like strong growth stocks but it does seem the market already appreciates this one quite well!

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth

earn in the future (free analyst consensus estimates)” data-reactid=”49″ type=”text”>Autodesk is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. So it makes a lot of sense to check out what analysts think Autodesk will earn in the future (free analyst consensus estimates)

A Different Perspective

We’ve identified 1 warning sign with Autodesk , and understanding them should be part of your investment process.” data-reactid=”51″ type=”text”>It’s nice to see that Autodesk shareholders have received a total shareholder return of 74% over the last year. That gain is better than the annual TSR over five years, which is 40%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We’ve identified 1 warning sign with Autodesk , and understanding them should be part of your investment process.

list of companies we expect will grow earnings.” data-reactid=”52″ type=”text”>Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”54″ type=”text”>

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected].

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