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Canonsburg, Pennsylvania-based ANSYS, Inc. (ANSS) develops and markets engineering simulation software and services for engineers, designers, researchers, and students. With a market cap of $29.2 billion, ANSYS operations span the Americas, Europe, Asia Pacific, the Middle East, and Africa.
Companies valued at $10 billion or more are generally considered "large-caps," and ANSYS fits this criterion perfectly, signifying its substantial size, stability, and influence in the software application industry. It stands at the forefront of simulation technology with a sophisticated and versatile portfolio tailored to industries like aerospace, defense, and automotive.
Its integrated multiphysics capabilities empower organizations to tackle intricate challenges and foster innovation. Strengthening its market leadership, ANSYS pursues strategic growth initiatives aimed at broadening its product offerings, growing its user base, and advancing computational efficiency.
However, ANSS shares are trading 8.2% below their 52-week high of $364.31, which they hit on Dec. 29. Also, the stock has surged 3.8% over the past three months, outperforming the Dow Jones Industrials Average’s ($DOWI) marginal gains during the same time frame.
In the long term, ANSS is down 7.8% on a YTD basis, but the shares have gained 12.1% over the past 52 weeks. In comparison, the DOWI has gained 12.3% in 2024 and 12.7% over the past year.
ANSS has been trading below its 50-day and 200-day moving averages since mid-October, indicating a recent bearish trend.
Shares of ANSS climbed 6.6% following its Q3 earnings release on Nov. 6. It posted an EPS of $2.58 and revenue of $601.9 million, both exceeding estimates, fueled by strong multi-year lease performance and a notable $88 million high-tech contract in the Americas, significantly bolstered investor confidence.
ANSYS faces strong competition from Autodesk, Inc. (ADSK) in the competitive software application industry. Autodesk has outperformed ANSS with a 20.6% gain on a YTD basis and a 23.3% return over the past year.
Considering its grim price action, analysts are skeptical about ANSS’s prospects. The stock has a consensus rating of "Hold" from 12 analysts in coverage. The mean price target of $352.89 reflects a 5.5% premium from current price levels.
