Today's video focuses on two software stocks that provide essential solutions to customers and maintain solid fundamentals for investors. First is Autodesk (ADSK 0.37%), which creates software for the architecture, engineering, construction, manufacturing, media, and entertainment markets. The second is Unity Software (U 0.92%), a popular game engine used to create various gaming experiences. Here are some highlights from the video.
- Companies with highly rated products could benefit investors and stock price returns in the long term, which is why Autodesk and Unity make it on the list. If you do an online search for "top game engine," you are likely to see Unity Software at or near the top of the list each time, and the same could be said for Autodesk in a search for "top CAD software."
- The balance sheet shows that neither company is perfect, but each has individual strengths. Autodesk has roughly $2.6 billion in long-term debt but has substantial cash and a short-term investment position of approximately $1.8 billion and is positive in cash flow from operations.
- Both companies are growing at a solid pace. Unity reported 42% year-over-year (YOY) revenue growth, and Autodesk reported 18% YOY growth in its previous earnings.
Click the video below for my full thoughts and analysis.
*Stock prices used were the closing prices of Jan. 14, 2022. The video was published on Jan. 15, 2022.
