ANSYS
ANSS
recently announced it will ink a new five-year enterprise license agreement with LG Electronics, scaling up the existing agreement and the longstanding relationship between the companies.
Per the latest collaboration, ANSYS will provide LG with continued access to its industry-leading simulation solutions to accelerate the latter’s sustainability and digital transformation initiatives.
ANSYS’ top-tier simulation-based research and development (R&D) responses will help LG drive and optimize product development in its core technologies and sectors, which are key to the company’s digital evolution. This will be done by integrating ANSYS’ simulation software portfolio into nascent stages of LG’s product development based on computer-aided engineering (CAE). This integration will boost product efficiency while significantly reducing development time, costs, material use and the need for physical prototyping.
Thus, with proactive support from ANSYS, LG will be able to ensure resource-efficient production with streamlined workflows. This will also help the company produce premium, next-generation products faster than expected while reducing its carbon emission and advancing its digital transformation.
Earlier during the pandemic, the partnership between the companies had helped LG’s engineers gain critical simulation training by using an on-demand virtual learning portal created by ANSYS.
Blooming Prospects for ANSYS’ Simulation Solutions
Canonsburg, PA-based ANSYS is the global leader in the high-end design simulation software industry. The company offers simulation solutions for developing next-generation 5G product designs, autonomous vehicles (AVs), thinner and more reliable mobile and Internet of Things (IoT) products as well as high-performance chips for advanced driver assistance systems (ADAS).
Per
Grand View Research data
, the simulation software market is projected to reach $33.9 billion by 2028 at a CAGR of 17.1% between 2021 and 2028, with the automotive segment being the largest end-user. According to the report, the surging demand for simulation software in the automotive vertical can be attributed to the increasing adoption of AVs. AVs have the potential to nearly eliminate passenger vehicle crashes, which are often caused by human error.
Amid the rising popularity of AVs, ANSYS’ simulation software portfolio is likely to help the manufacturers of self-driving vehicles to test their designs and enhance road safety at minimal costs.
In January, ANSYS’ software was
leveraged
by France-based EasyMile to demonstrate the safety of their driverless vehicles. EasyMile specializes in offering software and end-to-end solutions for AVs.
Prior to that, ANSYS
announced
that Innoviz Technologies is utilizing its simulation software solutions to advance work on automotive-grade LiDAR sensors. Israel-based Innoviz specializes in manufacturing LiDAR sensors for the development of autonomous vehicles. Some of the company’s most notable product offerings include InnovizOne, InnovizTwo and Perception Software.
Shares of ANSS have dropped 21.4% in the past year against the
industry
’s rise of 14.9%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
ANSYS carries a Zacks Rank of 3 (Hold) currently.
Some better-ranked stocks from the broader technology space include
Progress Software
PRGS
,
Badger Meter
BMI
and
Cadence Design Systems
CDNS
.While Progress Software and Badger Meter sport a Zacks Rank #1 (Strong Buy), Cadence carries a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Progress Software has a projected earnings growth rate of 3.62% for fiscal 2022. The Zacks Consensus Estimate for Progress Software’s fiscal 2022 earnings has been revised upward by 6 cents in the past 60 days. The long-term earnings growth rate of the company is pegged at 2%.
Progress Software’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 26.8%. Shares of PRGS have rallied 0.1% in the past year.
Badger Meter has a projected earnings growth rate of 5.77% for 2022. The Zacks Consensus Estimate for Badger Meter’s 2022 earnings has been revised upward by 19 cents in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and met estimates once, the average surprise being 14%. Shares of BMI have dropped 3.3% in the past year.
Cadence has a projected earnings growth rate of 9.11% for 2022. The Zacks Consensus Estimate for Cadence’s 2022 earnings has been unchanged in the past 90 days. The long-term earnings growth rate of the company is pegged at 18.2%.
Cadence’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11%. Shares of CDNS have declined 1% in the past year.
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