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ANSYS, Inc. (ANSS), headquartered in Canonsburg, Pennsylvania, develops and markets engineering simulation software and services for engineers, designers, researchers, and students. With a market cap of $27.7 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.
ANSYS boasts a diverse and advanced suite of simulation software products that cater to industries such as aerospace, defense, and automotive, where its integrated multiphysics capabilities are crucial for complex problem-solving and innovation. The company's strong market position is further reinforced by its strategic growth initiatives, which focus on expanding its product range, increasing its user base, and driving more computations.
However, ANSS shares are trading 14% below their 52-week high of $364.31, which they hit on Dec. 29. Also, the stock has plunged 3.6% over the past three months, underperforming the broader Nasdaq Composite’s ($NASX) 1.6% fall over the same time frame.
In the long term, ANSS is down 13.6% on a YTD basis, but the shares have gained marginally over the past 52 weeks. In comparison, the NASX has gained 17.1% in 2024 and 28.2% over the past year.
ANSS has been trading below its 50-day moving average since the last couple of trading sessions and under its 200-day moving average since late August, indicating a recent bearish trend.
Despite its weak price momentum this year, ANSYS stock edged up 3% after revealing its Q2 earnings report on July 31, exceeding Wall Street expectations with 19.6% revenue growth to $594.1 million and an 87% rise in net income to $130 million.
ANSYS faces strong competition from Autodesk, Inc. (ADSK) in the competitive software application industry. Autodesk has outperformed ANSS with an 8.5% gain on a YTD basis and a 23.7% 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 13 analysts in coverage. The mean price target of $343.40 reflects a 9.6% premium from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
