Strong And Under The Radar Today: Ansys (ANSS)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Ansys ( ANSS) as a strong and under the radar 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 $38.3 million.
  • ANSS is making at least a new 3-day high.
  • ANSS has a PE ratio of 32.
  • ANSS is mentioned 1.90 times per day on StockTwits.
  • ANSS has not yet been mentioned on StockTwits today.
  • ANSS is currently in the upper 20% of its 1-year range.
  • ANSS is in the upper 35% of its 20-day range.
  • ANSS is in the upper 45% of its 5-day range.
  • ANSS is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on ANSS:

ANSYS, Inc. ANSS has a PE ratio of 32. Currently there are 3 analysts that rate Ansys a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Ansys has been 369,800 shares per day over the past 30 days. Ansys has a market cap of $7.8 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.20 and a short float of 1.6% with 2.65 days to cover. Shares are up 5.3% year-to-date as of the close of trading on Tuesday.

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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, solid stock price performance, growth in earnings per share, expanding profit margins and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • ANSS's revenue growth has slightly outpaced the industry average of 1.4%. Since the same quarter one year prior, revenues slightly increased by 1.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • 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 ($3.45 versus $2.71).
  • The gross profit margin for ANSYS INC is currently very high, coming in at 81.19%. Regardless of ANSS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ANSS's net profit margin of 25.77% compares favorably to the industry average.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the Software industry average. The net income has decreased by 0.7% when compared to the same quarter one year ago, dropping from $56.54 million to $56.13 million.

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