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2 Stocks Down 27% and 8% to Buy Right Now
ADBEAdobe(ADBE) The Motley Fool·2025-02-15 14:15

Group 1: Adobe - Adobe's stock has declined approximately 27% despite the company reporting record revenue of 21.5billionin2024,reflectingan1121.5 billion in 2024, reflecting an 11% year-over-year growth [4][2] - The company achieved record operating cash flow of 8.06 billion in 2024, with 2.92billiongeneratedinthefourthquarter[4]−Adobe′scustomerengagementremainsstrong,particularlywithitsgenerativeAImodels,Firefly,whichsurpassed16billiongenerations[6][5]−CurrenttradingmultiplesforAdobeareatadiscountcomparedtotheirfive−yearaverages,makingitanattractivebuyingopportunity[6]Group2:PTC−PTC′srecentfirst−quarter2025earningsreportdisappointedsomeinvestors,butthecompanycontinuestoshowstronggrowthpotentialdrivenbytheadoptionofdigitaltechnologyinproductdesignandmanufacturing[7][8]−Thecompanyisfacingchallengesduetoanindustrialslowdownaffectingitsend−marketcustomers,leadingtoacutinfull−yearrevenueandearningsguidance[9]−Despitethesechallenges,PTC′sannualrunrate(ARR)isexpectedtogrowby92.92 billion generated in the fourth quarter [4] - Adobe's customer engagement remains strong, particularly with its generative AI models, Firefly, which surpassed 16 billion generations [6][5] - Current trading multiples for Adobe are at a discount compared to their five-year averages, making it an attractive buying opportunity [6] Group 2: PTC - PTC's recent first-quarter 2025 earnings report disappointed some investors, but the company continues to show strong growth potential driven by the adoption of digital technology in product design and manufacturing [7][8] - The company is facing challenges due to an industrial slowdown affecting its end-market customers, leading to a cut in full-year revenue and earnings guidance [9] - Despite these challenges, PTC's annual run rate (ARR) is expected to grow by 9% to 10% in constant currency, with free cash flow (FCF) projected between 835 million and $850 million, indicating underlying demand strength [11][10] - The recent stock sell-off presents a favorable buying opportunity for investors [11]