12 Best Automation Stocks To Buy According to Hedge Funds

7. PTC Inc. (NASDAQ:PTC)

No. of Hedge Fund Holders: 39

PTC Inc. (NASDAQ:PTC) is a leading software company that serves industrial and manufacturing companies to digitally manage how they manufacture, engineer, and service physical products. The company’s product lifecycle management (PLM) portfolio allows companies to transform product data and manage processes.

The modern-day industrial revolution is driven by a new age of integrated smart digital technologies that automate processes in real time. These technologies have a massive impact on the manufacturing industry, and PTC Inc.’s software plays a key role in them. For instance, a product is designed using PTC Inc.’s computer-aided design (CAD) software. The design then develops a manufacturing process using the company’s PLM software, which monitors and controls production.

On February 4, Rosenblatt analyst Blair Abernethy maintained a Buy rating on PTC shares with a price target of $204. The analyst is bullish on the stock with its sustained customer renewal rates and extended selling cycles. PTC Inc. has struggled in the last two years as manufacturers scaled back investment plans due to a sluggish economy. However, M&A activity is expected to gain momentum in 2025, which will potentially create a better business environment and add more clients to PTC’s customer base.

In addition to that, PTC Inc. (NASDAQ:PTC) continues to experience a double-digit growth in its annual run rate (ARR) and software as a service (SaaS). PTC Inc. is also focusing on its Application Lifecycle Management (ALM) solution’s performance, particularly in the automotive sector, including OEMS and supply chains.