Adobe Systems Incorporated (ADBE), Autodesk, Inc. (ADSK): There’s Still Money to Be Made in Forgotten Activism

GoToMeeting

Citrix Systems, Inc. (NASDAQ:CTXS) is a leading developer and supplier of access infrastructure software and services. Citrix designs, develops and markets products and services that enable information technology to be delivered securely on demand, which includes its key GoToMeeting product. I like Citrix Systems, Inc. (NASDAQ:CTXS)’s virtual- desktop model, as it gives its users impressive flexibility.

Revenue is expected to be up some 15% in 2013, as companies expand their IT budgets. As well, the other big positive for the company is Citrix’s move to cloud computing. So far this year, Citrix’s key contracts have been from the bustling financial services and healthcare sectors.

I think the desktop-virtualization market will be one of the fastest growing segments in the future. The market is expected to hit upwards of 100 million users this year, according to Gartner, and Citrix Systems, Inc. (NASDAQ:CTXS) has pegged the the personal cloud- computing market as becoming a multi-billion dollar opportunity by 2015.

Bottom line

ValueACT’s second largest public-equity portfolio holding, Adobe Systems Incorporated (NASDAQ:ADBE), still appears to be a solid investment. Meanwhile, the other major software companies are also intriguing buys. Analysts expect Adobe to grow EPS at an annualized 11.7% over the next five years, Autodesk, Inc. (NASDAQ:ADSK) 13.2% and Citirx 13.8%. All of the companies operate in the high-margin software business, and it wouldn’t be unreasonable to buy up each of them.

The article There’s Still Money to Be Made in Forgotten Activism originally appeared on Fool.com and is written by Marshall Hargrave.

Marshall Hargrave has no position in any stocks mentioned. The Motley Fool recommends Adobe Systems. Marshall is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.