Trade-Ideas LLC identified

Ansys

(

ANSS

) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Ansys as such a stock due to the following factors:

  • ANSS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $40.2 million.
  • ANSS has traded 116,763 shares today.
  • ANSS traded in a range 234.4% of the normal price range with a price range of $5.81.
  • ANSS traded below its daily resistance level (quality: 15 days, meaning that the stock is crossing a resistance level set by the last 15 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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More details on ANSS:

ANSYS, Inc. ANSS has a PE ratio of 31. Currently there are 4 analysts that rate Ansys a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Ansys has been 435,000 shares per day over the past 30 days. Ansys has a market cap of $7.7 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.92 and a short float of 2.7% with 5.63 days to cover. Shares are down 6.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ansys as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, increase in net income and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • ANSS's revenue growth has slightly outpaced the industry average of 6.3%. Since the same quarter one year prior, revenues slightly increased by 1.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ANSS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, ANSS has a quick ratio of 2.41, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for ANSYS INC is currently very high, coming in at 90.81%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.76% is above that of the industry average.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Software industry average. The net income increased by 0.8% when compared to the same quarter one year prior, going from $65.48 million to $66.03 million.
  • ANSYS INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ANSYS INC increased its bottom line by earning $2.71 versus $2.59 in the prior year. This year, the market expects an improvement in earnings ($3.38 versus $2.71).

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