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These Are 2 Stocks That I'm Keeping an Eye On

By Jose Najarro – Sep 15, 2021 at 10:33AM

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This 3D-modeling software company can be a strong winner as digital content continues to grow.

Today's video focuses on Magnite (MGNI 6.65%) and Autodesk (ADSK -2.81%). These two companies have seen a correction in stock prices, which may be giving long-term investors a buying opportunity. Here are some highlights from the video: 

  1. Magnite, a company in the ad tech market, is down over 50% from its 52-week high. In the past few months, Magnite has made numerous acquisitions to accelerate its growth. As a consequence, its balance sheet has decreased in cash and short-term investments and increased in debt. The changes in the balance sheet could have some investors worried about the future of the company and the need to raise cash. 
  2. Autodesk's stock price is down over 15% from its 52-week high, even though this is a software leader in the 3D modeling market. The short-term bearish sentiment toward Autodesk could be the result of numerous downgrades on price targets from analysts. Regardless of short-term volatility, Autodesk has free cash flow margins of 36% over its trailing 12 months. 
  3. Even though the media and entertainment segment is the smallest revenue driver, making $69 million out of a total revenue of $1.06 billion for its most recent quarter, this segment could be a potential growth catalyst for Autodesk. As gaming, animation, and even digital collectibles like non-fungible tokens continue to grow, the need for Autodesk's software could also increase.

Click the video below for my full thoughts and analysis. 

*Stock prices used were the closing prices of Sept. 13, 2021. The video was published on Sept. 14, 2021.


 

Jose Najarro owns shares of Magnite, Inc. The Motley Fool owns shares of and recommends Autodesk and Magnite, Inc. The Motley Fool has a disclosure policy.Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Stocks Mentioned

Autodesk Stock Quote
Autodesk
ADSK
$201.11 (-2.81%) $-5.82
Magnite Stock Quote
Magnite
MGNI
$12.66 (6.65%) $0.79

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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