Ansys (ANSS) Hits New Lifetime High

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 new lifetime high 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 $35.3 million.
  • ANSS has traded 2,688 shares today.
  • ANSS is trading at a new lifetime high.

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More details on ANSS:

ANSYS, Inc. ANSS has a PE ratio of 33. 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 361,700 shares per day over the past 30 days. Ansys has a market cap of $8.1 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.21 and a short float of 1.6% with 3.71 days to cover. Shares are up 10.9% year-to-date as of the close of trading on Friday.

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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, solid stock price performance, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • ANSS's revenue growth has slightly outpaced the industry average of 7.2%. 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.
  • 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 2.22, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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.
  • The gross profit margin for ANSYS INC is currently very high, coming in at 90.11%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.77% is above that of the industry average.
  • 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).

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