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Buy signal on Ansys (ANSS-US)

We had an Enter Long Strategic signal on November 8, 2021, triggered by our system on Ansys, ANSS-US, the US software company.

Our system also triggered an Enter Long Tactical signal on October 19, 2021 that implies a likely bullish acceleration. Ansys has a solid track record, with a Behavioral score of 10/10, therefore the bullish signal is to be considered mainly as Strategic.

Ansys is a $ 35.5 Bn market software company and the undisputed leader in software simulation. Its engineering simulation software are used by engineers across a range of industries including aerospace and defense, automotive, industrial equipment, electronics, biomedical, energy, materials and chemical processing, and semiconductors. The Company focuses on the development of open and flexible solutions that enable users to analyze designs directly on the desktop, providing a common platform for product development, from design concept to final-stage testing and validation. The Company distributes its ANSYS suite of simulation technologies through a network of independent resellers and distributors, and direct sales offices in various locations.

As the leader in an industry with high barriers to entry, ANSYS benefits from above-average returns on invested capital. ANSYS has several competitive advantages including the high degree of fidelity its customers have towards the software suits the company offers, and best-in-class physics simulations. Ansys is a strategic software supplier by helping customers launch the right products and do so with a faster time to market. It also helps with the bottom line as companies usually need to create fewer physical prototypes, and improve quality/security. All in all ANSYS' software enables rapid innovation and reduces R&D complexity and cycle times.

For 2021, the company is expected to post a $ 1.9 Bn revenue coupled with a 41% operating margin. EPS growth is expected to stand at double digit in the next following years.

Short term catalyst: Q3 beat street expectations.

This signal looks consistent with the US software sector in major bullish trend, while there is 61% of US software stocks in Strategic signal and 49% in Tactical signal.