Dernières nouvelles pour Ansys (NASDAQ:ANSS) Stock

Ansys

Ansys is an engineering software company that provides simulation capabilities for structural, fluids, semiconductor power, embedded software, optical, and electromagnetic properties. Ansys employs over 4,000 people and serves over 50,000 customers globally, including those in aerospace defense and automotive.

Ansys Inc

ANSYS ORD

Synopsys (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/snps#NASDAQ">SNPS</a>) shares have experienced a pullback in recent times, with shares now trading 19.7% below its 52-week high of $629.38 achieved on Sept. 30.
Over the past three months, Synopsys shares have plunged 16.9%, underperforming the broader Zacks Computer &amp; Technology Sector&#39;s decline of 1.1% and the Zacks Computer &ndash; Software industry&#39;s fall of 2.7%.
Synopsys is currently facing several challenges, including a rise in cost of revenues and operating expenses. In the third quarter of fiscal 2024, these costs increased to $1.17 billion compared to $1.01 billion in the same period last year. This sharp rise has raised concerns about the company&#39;s ability to manage its rising costs effectively.
SNPS faces intense competition in the semiconductor and electronic design automation (EDA) space, which has been a headwind. Delays in realizing synergies from recent acquisitions have been a concern.
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<h2>Synopsys, Inc. Price and Consensus</h2>
<img alt="Synopsys, Inc. Price and Consensus" src="https://staticx-tuner.zacks.com/images/charts/2b/1727786842.png" style="height:278px; width:620px" title="" />
Synopsys, Inc. price-consensus-chart | Synopsys, Inc. Quote
Does the dip in SNPS shares make the stock attractive? Let&#39;s analyze.
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<h2>Synopsys Prospects Ride on Strong Portfolio</h2>
Synopsys&#39; innovative product lineup is expected to boost its prospects. The shift toward hybrid working is driving demand for higher bandwidth, which bodes well for the company&#39;s solutions. The rising demand for AI, 5G and IoT benefits SNPS&#39; prospects.
Synopsys reported strong revenues in the third quarter of fiscal 2024, with revenues increasing 13% year over year to $1.53 billion, in line with the Zacks Consensus Estimate.
SNPS anticipates achieving approximately 15% revenue growth for fiscal 2024. For fiscal 2024, it expects revenues between $6.105 billion and $6.135 billion.
The Zacks Consensus Estimate for revenues is pegged at $6.13 billion, indicating year-over-year growth of 4.93%.
For fiscal 2024, non-GAAP earnings are expected in the range of $13.07-$13.12 per share. The consensus mark for earnings is pegged at $13.12 per share, unchanged over the past 30 days.
For the fourth quarter of 2024, Synopsys expects revenues between $1.614 billion and $1.644 billion. The Zacks Consensus Estimate for fourth-quarter fiscal 2024 is currently pegged at 3.28 per share, up by a penny over the past 30 days.
Non-GAAP earnings are expected to be between $3.27 per share and $3.32 per share. The consensus mark for fourth-quarter fiscal 2024 revenues is pegged at $1.62 billion, indicating year-over-year growth of 1.01%.
<h2>Will Acquisitions Help SNPS Stock Rebound?</h2>
Synopsys has made several acquisitions to expand its product portfolio and drive growth. Over the past five years, it acquired more than 15 companies, including Intrinsic ID and Valtrix in 2024.&nbsp;
Synopsys is in the process of acquiring ANSYS (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/anss#NASDAQ">ANSS</a>), a move designed to strengthen its Silicon to Systems strategy, particularly in sectors such as automotive, aerospace and industrial. This acquisition is expected to expand Synopsys&#39; customer base and enhance its product offerings.
<h2>Slowing Top-Line Growth, Stiff Competition Concerns for SNPS</h2>
Synopsys&#39; Design Automation segment saw slower growth in the third quarter of fiscal 2024. Revenues from this segment increased a modest 6% year over year, reaching $1.06 billion. In comparison, the same segment saw 23% growth in the third quarter of fiscal 2023, reaching $1.0 billion.
This downturn was due to tough competition in the EDA market, where Synopsys competes with major players like Cadence Design Systems (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cdns#NASDAQ">CDNS</a>) and Mentor Graphics.&nbsp;
Unfavorable forex and a challenging macroeconomic environment are major deterrents for investors.
<h2>Zacks Rank &amp; Valuation</h2>
Synopsys currently carries a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point in the stock.
Its Value Score of D indicates a stretched valuation at this moment.
In terms of forward Price/Earnings, SNPS is currently trading at 34.82X, higher than the broader sector&#39;s 32.33X.
<h2>A Top-Ranked Stock to Consider</h2>
Progress Software (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/prgs#NASDAQ">PRGS</a>) is a better-ranked stock in the broader sector, sporting a Zacks Rank #1 (Strong Buy).
Long term earnings growth rate is currently pegged at 2%. Progress Software shares have appreciated 23.2% year to date.
<a href="https://www.zacks.com/stock/news/2344135/snps-drops-20-from-52-week-high-is-the-stock-worth-buying-on-dip?cid=CS-BENZ-FT-analyst_blog|rank_focused-2344135">To read this article on Zacks.com click here.</a>

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ANSS

CDNS

PRGS

SNPS

SNPS Drops 20% From 52-Week High: Is the Stock Worth Buying on Dip?

Ansys's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANSS#NYSE">ANSS</a>) short percent of float has risen 8.41% since its last report. The company recently reported that it has 1.63 million shares sold short, which is 2.45% of all regular shares that are available for trading. Based on its trading volume, it would take traders 4.01 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Ansys Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1727716518_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Ansys has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Ansys's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Ansys's peer group average for short interest as a percentage of float is 3.22%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Looking Into Ansys's Recent Short Interest

Keysight Technologies, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/keys#NYSE">KEYS</a>) has been designated by UL Solutions as the certification test partner for Thunderbolt 5 products. This new role reinforces UL Solutions&#39; position as an Intel-authorized lab for Thunderbolt 5 technologies.
Thunderbolt 5 certification mandates compliance with Thunderbolt standards and Keysight, in collaboration with UL Solutions, is committed to ensuring that the products meet these requirements. To validate Thunderbolt 5 certification, UL Solutions uses several Keysight test and measurement products, including the Infiniium UXR B Series Oscilloscopes, the M8000 Series High-Performance BERT and ENA Vector Network Analyzers.
Thunderbolt 5 brings a significant advancement in wired connectivity, boasting data transfer speeds of up to 120 Gbps &mdash; almost three times faster than Thunderbolt 4. This enhanced capability accommodates innovative display technologies and improves power delivery, enabling quicker transfers of large files like ultra-high-definition videos and intricate 3D models. The outcome is a more efficient workflow, increased productivity and an enriched user experience.
<h2>Keysight&#39;s Testing Solutions Gain Traction</h2>
Keysight&#39;s performance is benefiting from the strong demand for its electronic design and test solutions. As electronic devices serve as the backbone of Internet of Things services, wireless technology, data centers and 5G technologies, the swift adoption of these devices is driving an increased need for the company&#39;s electronic testing equipment.
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<h3>Keysight Technologies Inc. Price and Consensus</h3>
<img alt="Keysight Technologies Inc. Price and Consensus" src="https://staticx-tuner.zacks.com/images/charts/a5/1727445933.png" style="height:265px; width:581px" title="" />
Keysight Technologies Inc. price-consensus-chart | Keysight Technologies Inc. Quote
Its award-winning Radar Scene Emulator is the only solution in the market to imitate realistic roadway scenarios in a lab environment. This solution was chosen by a leading U.S. auto manufacturer for testing and validation of autonomous drive systems.
Earlier this month, Keysight announced that it had achieved a milestone by successfully testing and certifying Autotalks&#39; vehicle-to-everything (V2X) communication solution in its device security research lab, Riscure Security Solutions, under the Common Criteria certification program. The successful completion will likely ensure the highest security standards, marking the first time a V2X chipset with an embedded Hardware Security Module receiving such certification.
The rising demand for electronics testing equipment is poised to boost Keysight&#39;s revenues and stock performance as it capitalizes on the growing adoption of essential electronic devices.
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<h2>KEYS&#39; Zacks Rank &amp; Stock Price Performance</h2>
KEYS currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 19.6% in the past year compared with the sub-industry&#39;s growth of 16%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/21/79564.jpg?v=28587084" />
Image Source: Zacks Investment Research
<h2>Stocks to Consider</h2>
Some better-ranked stocks from the broader technology space are Seagate Technology Holdings plc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/stx#NASDAQ">STX</a>), ANSYS, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/anss#NASDAQ">ANSS</a>) and American Software, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amswa#NASDAQ">AMSWA</a>).&nbsp;STX presently sports a Zacks Rank #1 (Strong Buy), whereas ANSS &amp; AMSWA carry a Zacks Rank #2 (Buy).
Seagate Technology delivered an earnings surprise of 80.9%, on average, in three of the trailing four quarters. In the last reported quarter, STX pulled off an earnings surprise of 40%. The Zacks Consensus Earnings Estimate for STX has increased 18% to $7.41 in the past 60 days.
ANSYS delivered an earnings surprise of 4.8%, on average, in three of the trailing four quarters. In the last reported quarter, ANSS pulled off an earnings surprise of 28.9%. It has a long-term earnings growth expectation of 6.4%.
American Software delivered an earnings surprise of 84.5%, on average, in the trailing four quarters. In the last reported quarter, AMSWA pulled off an earnings surprise of 71.4%. The Zacks Consensus Earnings Estimate for AMSWA has increased 8.6% to 38 cents in the past 60 days.
<a href="https://www.zacks.com/stock/news/2342766/can-keys-stock-gain-from-facilitating-thunderbolt-5-certification?cid=CS-BENZ-FT-analyst_blog|company_news_tech_sector-2342766">To read this article on Zacks.com click here.</a>

Small Cap

AMSWA

KEYS

Can KEYS Stock Gain From Facilitating Thunderbolt 5 Certification?

On Wednesday, Synopsys, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNPS#NASDAQ">SNPS</a>) <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/n41033101/synopsys-and-tsmc-pave-the-path-for-trillion-transistor-ai-and-multi-die-chip-design" rel="noreferrer noopener">announced its continued</a> collaboration with Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) to deliver advanced EDA and IP solutions on the contract chipmaker&#8217;s most advanced process and 3DFabric technologies, accelerating innovation for AI and multi-die designs.
&#8220;Synopsys&#8217; certified Custom Compiler and PrimeSim solutions provide the performance and productivity gains that enable our designers to meet the silicon demands of high-performance analog design on the Taiwan Semiconductor N2 process,&#8221; said&nbsp;Ching San Wu, Corporate VP at MediaTek.
In addition, Synopsys is collaborating with Taiwan Semiconductor on the new backside routing capabilities.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/24/09/41007184/taiwan-semi-secures-7-5b-boost-for-arizona-expansion-aims-for-advanced-chip-production-report" rel="noreferrer noopener">Taiwan Semi Secures $7.5B Boost for Arizona Expansion, Aims for Advanced Chip Production: Report</a>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/26082010/newplot-22.png" alt="" class="wp-image-567584" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/26082010/newplot-22.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/26082010/newplot-22-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
The electronic design automation company supports the contract chipmaker&#8217;s A16 process in the Synopsys digital design flow to address power distribution and signal routing for design performance efficiency and density optimization.&nbsp;
&#8220;Our collaboration with&nbsp;Synopsys and Taiwan Semiconductor exemplifies our collective commitment to driving innovation and enabling the future of AI and multi-die chip design,&#8221; said&nbsp;John Lee, vice president and general manager of the semiconductor, electronics, and optics business at Ansys Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ANSS#NASDAQ">ANSS</a>).
Ansys and Taiwan Semiconductor recently collaborated with Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) to speed up <a target="_blank" href="https://www.benzinga.com/news/24/09/41008834/ansys-taiwan-semiconductor-microsoft-team-up-to-supercharge-next-gen-chip-simulations" rel="noreferrer noopener">photonic chip simulations</a>.
Semiconductor stocks, including Synopsys and Taiwan Semiconductor stocks, are trading upwards Thursday in solidarity with Micron Technology, Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) <a target="_blank" href="https://www.benzinga.com/news/earnings/24/09/41034733/micron-q4-earnings-revenue-eps-beat-on-robust-ai-demand-company-sees-significantly-improved-profita" rel="noreferrer noopener">upbeat quarterly print</a>.
The <a target="_blank" href="https://www.benzinga.com/government/24/09/40938590/whats-going-on-with-ai-related-stocks-nvidia-amd-broadcom-and-super-micro-on-thursday" rel="noreferrer noopener">semiconductor industry is</a> riding high on the AI wave, and the U.S. Fed rate cuts are providing an additional tailwind for the sector.
Investors can gain exposure to the semiconductor sector through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Actions: At the last check on Thursday, SNPS stock was up 0.90% at $514.95, and TSM stock was up 1.99% at $185.99.

MSFT

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

Synopsys Partners With Taiwan Semi To Power Next-Gen AI Chip Innovations

Strategic relationship signals long-term commitment to weave digital thread with Ansys technology&nbsp;
/ Key Highlights
<ul>
<li>A multi-year agreement between Liebherr Group and Ansys seeks to maximize simulation value through software democratization across sites to drive better product design strategies, reduce overall testing, and speed up time-to-market</li>
<li>Liebherr-Aerospace's digital transformation strategy is supported by an Ansys-driven, model-based enterprise approach and <a href="https://c212.net/c/link/?t=0&amp;l=en&amp;o=4263717-1&amp;h=3081161050&amp;u=https%3A%2F%2Fwww.cadfem.net%2Fde%2Fen%2Fcadfem-informs%2Fproduct-development-at-liebherr.html&amp;a=CADFEM+Services">CADFEM Services</a></li>
</ul>
PITTSBURGH, Pa., Sept. 26, 2024 /PRNewswire/ -- <a href="https://c212.net/c/link/?t=0&amp;l=en&amp;o=4263717-1&amp;h=1951554102&amp;u=https%3A%2F%2Fansys.me%2F3XVTpuH&amp;a=Ansys">Ansys</a>&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ANSS#NASDAQ">ANSS</a>) joins Liebherr in the implementation of the European manufacturer's simulation strategy and model-based enterprise approach. Liebherr's 35-year engagement with Ansys extends across the Ansys product portfolio, strengthening the digital thread and presenting a clear competitive advantage for Liebherr in developing products that exceed customer expectations.

Ansys  Joins Liebherr In The Implementation Of The European Manufacturer's Simulation Strategy And Model-Based Enterprise Approach, Signaling Long-Term Commitment To Weave Digital Thread With Ansys Technology

TSMC Expands Collaboration With Ansys To Integrate AI Technology, Boosting 3D-IC Design Productivity And Advancing Multiphysics Solutions For AI, HPC, And High-Speed Data Communication Semiconductors

ANSYS Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ANSS#NASDAQ">ANSS</a>) and Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) announced a <a href="https://www.prnewswire.com/news-releases/tsmc-collaborates-with-ansys-and-microsoft-to-accelerate-photonic-simulations-302255918.html" target="_blank" rel="noreferrer noopener">successful pilot with</a> Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) on Tuesday to boost the simulation and analysis of silicon photonic components.
Together, Ansys and Taiwan Semiconductor achieved a tenfold speed-up of Ansys Lumerical FDTD photonics simulation via Microsoft Azure NC A100v4-series virtual machines powered by NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) accelerated computing running on Azure AI infrastructure.
John Lee, vice president and general manager of Ansys&#8217;s semiconductor, electronics and optics business unit: &#8220;Collaborating with TSMC and Microsoft has accelerated technologies that address high-speed optical data transfer, which is one of the most important chip design challenges today.&#8221;
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39621141/taiwan-semiconductors-expansion-in-ai-and-2nm-technology-set-to-boost-future-growth">Taiwan Semiconductor&#8217;s Expansion in AI and 2nm Technology Set to Boost Future Growth, Analyst Says</a>
<a href="https://www.benzinga.com/news/24/09/40687807/whats-going-on-with-taiwan-semiconductor-stock-on-tuesday" target="_blank" rel="noreferrer noopener">Recent reports indicated</a> Taiwan Semiconductor and global chip designers and suppliers are fast-tracking the development of next-generation silicon photonic solutions to address the energy and data transmission speeds needed by AI computing. 
K.C. Hsu of Taiwan Semiconductor expects the silicon photonics market to grow at an annual compound rate of 40% between 2023-28 to $500 million, driven by demand for high-data-rate modules for increased fiber-optic network capacity.
<a target="_blank" href="https://www.benzinga.com/news/24/07/39844872/ansys-nvidia-and-super-micro-partner-to-boost-simulation-efficiency" rel="noreferrer noopener">Earlier this year</a>, Ansys collaborated with Nvidia and AI server company Super Micro Computer, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) for turnkey hardware solutions that boost Ansys multiphysics simulation capabilities.
Ansys creates engineering simulation software to facilitate quicker decision-making, improve product and system designs, and optimize workflows throughout the product life cycle.
Price Actions: TSM stock is up 3.54% at $180.86; ANSS is down 0.32% at $320.25; and MSFT is down 0.86% at $429.80.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40986921/microsofts-ai-lead-shrinks-analyst-downgrades-stock-as-amazon-and-google-close-the-" target="_blank" rel="noreferrer noopener">Microsoft&#8217;s AI Lead Shrinks: Analyst Downgrades Stock As Amazon And Google Close The Gap</a></li>
</ul>
Photo: Shutterstock

NVDA

SMCI

ANSYS, Taiwan Semiconductor, Microsoft Team Up To Supercharge Next-Gen Chip Simulations

General

Ansys  And TSMC Announce Pilot With Microsoft To Speed Up Simulation And Analysis Of Silicon Photonic Components

TELUS Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tu#NYSE">TU</a>) is set to launch SmartEnergy, a unique solution designed to help customers save on energy bills and minimize their environmental impact, all through an easy-to-use app that offers attractive incentives on smart devices. This service is now accessible to all Canadians outside Quebec for C$12 per month, and new subscribers can get a smart thermostat and two smart plugs for a one-time fee of C$25, saving over C$250.
The SmartHome+ app leverages AI and real-time insights to help users automate their daily routines, track energy consumption and control all connected devices &mdash; new and existing &mdash; from one convenient interface, added TELUS.
Using TELUS&#39; SmartHome+ app, subscribers can connect compatible smart devices like thermostats and plugs to save up to 15% on energy bills through automated temperature adjustments, switching off unused devices and personalized routines. They can also monitor their energy consumption with insights over various periods, along with tips for maximizing savings. Additionally, subscribers can participate in energy-saving events that ease the load on the energy grid during peak times by automatically powering down devices or adjusting thermostat settings, all while earning TELUS Rewards for their contributions to sustainability.
TELUS plans to further expand the range of smart devices compatible with the SmartHome+ app to include EV chargers and home solar systems, enabling customers to access more savings while managing their home automation, security and Internet services easily. The company is also collaborating with Canadian utilities to support grid demand response programs, which are essential during extreme weather conditions that increase demand and may lead to shortages or outages.
<div class="chart_embed">
<h3>TELUS Corporation Price and Consensus</h3>
<img alt="TELUS Corporation Price and Consensus" src="https://staticx-tuner.zacks.com/images/charts/6a/1726755546.png" style="height:265px; width:574px" title="" />
TELUS Corporation price-consensus-chart | TELUS Corporation Quote
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<h2>TELUS Focused on Driving Sustainability &nbsp;</h2>
TELUS actively supports environmental sustainability and is planting four trees annually for each SmartEnergy subscriber. Over the last two decades, the company has planted a total of 12.7 million trees and has remained dedicated to restoring forests for the benefit of both present and future generations.
The company aims to source 100% of its electricity from renewable or low-emission sources by 2025 and enhance energy efficiency by 50% by 2030 compared to 2019 levels. Its goal is to become a net carbon-neutral company by 2030 or sooner.
Earlier this month, the company joined forces with the Quebec Artificial Intelligence Institute, Mila, to advance artificial intelligence technology for societal good. This partnership will allow both organizations to explore cutting-edge AI innovations and assess their potential effects on various industries, benefiting customers in Canada. TELUS also holds the Outstanding Organization prize from the Responsible AI Institute for its dedication to fostering trust and benefiting society.
Vancouver, British Columbia-based TELUS is one of the leading telecom carriers in Canada (the largest in western Canada), with more than C$20 billion in annual revenues and 19 million customer connections. It provides wireless, wireline and Internet communications services for voice and data to businesses and consumers.
<h2>TU&#39;s Zacks Rank &amp; Stock Price Performance</h2>
TU currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 3.3% in the past year compared with the sub-industry&#39;s growth of 7.5%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/41/78493.jpg?v=1170747498" />
Image Source: Zacks Investment Research
<h2>Stocks to Consider</h2>
Some better-ranked stocks from the broader technology space are Manhattan Associates, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/manh#NASDAQ">MANH</a>), ANSYS, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/anss#NASDAQ">ANSS</a>) and American Software, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amswa#NASDAQ">AMSWA</a>). MANH presently sports a Zacks Rank #1 (Strong Buy), whereas ANSS &amp; AMSWA carry a Zacks Rank #2 (Buy) each.
Manhattan Associates delivered an earnings surprise of 26.6%, on average, in the trailing four quarters. In the last reported quarter, MANH pulled off an earnings surprise of 22.9%. The Zacks Consensus Estimate for MANH has increased 9.2% to $4.26 in the past 60 days.
ANSYS delivered an earnings surprise of 4.8%, on average, in three of the trailing four quarters. In the last reported quarter, ANSS pulled off an earnings surprise of 28.9%. It has a long-term earnings growth expectation of 6.4%.
American Software delivered an earnings surprise of 84.5%, on average, in the trailing four quarters. In the last reported quarter, AMSWA pulled off an earnings surprise of 71.4%. The Zacks Consensus Estimate for AMSWA has increased 8.6% to 38 cents in the past 60 days.
<a href="https://www.zacks.com/stock/news/2338734/telus-unveils-new-smartenergy-solution-to-boost-sustainability?cid=CS-BENZ-FT-analyst_blog|company_news_tech_sector-2338734">To read this article on Zacks.com click here.</a>

MANH

TELUS Unveils New SmartEnergy Solution to Boost Sustainability

Wix.com Ltd. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wix#NASDAQ">WIX</a>) has launched its latest artificial intelligence Theme Assistant that provides users with personalized recommendations and real-time advice, allowing them to easily customize their website&#39;s theme. This tool is part of a broader suite of innovations from Wix aimed at supporting users throughout every phase of their online journey, from initial ideas to final execution.
As website designing becomes more complicated day by day, users frequently encounter difficulties aligning their choices with their vision. The AI Theme Assistant addresses this by offering conversational guidance throughout the design process, assisting with color palettes, fonts and themes, and even extracting colors from logos, added WIX.
AI Theme Assistant is integrated directly into the Wix Editor and it provides real-time suggestions and directs users to relevant areas in the Wix dashboard. By recommending features and advising on theme elements, the assistant simplifies design decisions, giving users control while enhancing their site&#39;s aesthetic.
Wix highlighted that integrating AI into web design adds significant value for its users. The theme assistant helps users achieve a cohesive and unified look for their websites, ensuring a consistent appearance throughout.
<h2>WIX to Gain From Product Line-Up Expansion</h2>
Wix&#39;s performance is being cushioned by higher adoption of the product portfolio, especially various AI products. WIX is also embedding AI assistants across its platform and has released 17 AI business assistants so far.
It continues to add new products to gain on the AI boom. In July 2024, Wix unveiled a new suite of AI-powered tools aimed at streamlining content creation. These tools are designed to suggest relevant blog topics, generate content and create images tailored to the target audience. This new feature allows users to quickly transform ideas into almost-ready articles, cutting down on the time and effort needed to produce engaging content.
In June 2024, the company launched advanced AI creation capabilities for its mobile app builder. The initiative is set to empower users to effortlessly craft professional and fully customizable applications. In the same month, the company also extended the availability of its AI Website Builder in different languages. Apart from English, AI Website Builder is now available to global users in French, German, Portuguese, Spanish, Italian, Japanese, Turkish and Korean languages. The initiative aids users in building websites in their preferred language.
Additionally, it launched the AI Portfolio Creator, a groundbreaking tool that leverages the power of AI to aid users in crafting and showcasing an online professional portfolio in May 2024. The AI Portfolio Creator effectively streamlines the portfolio creation experience by allowing users to smoothly upload and organize large-scale image collections with just a few clicks.
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<h3>Wix.com Ltd. Price and Consensus</h3>
<img alt="Wix.com Ltd. Price and Consensus" src="https://staticx-tuner.zacks.com/images/charts/06/1726232794.png" style="height:265px; width:585px" title="" />
Wix.com Ltd. price-consensus-chart | Wix.com Ltd. Quote
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WIX is focusing on generative AI as it represents a significant business growth driver. In the second quarter of 2024, bookings revenues came at $458.4 million. This 15% year-over-year improvement was driven by solid uptake of WIX Studio, AI product suite and expanding commerce platform in this quarter. The expansion of the AI product portfolio is expected to drive the top line for WIX and further boost the stock.
<h2>WIX&#39;s Zacks Rank &amp; Stock Price Performance</h2>
WIX currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 64.1% in the past year compared with the sub-industry&#39;s growth of 20.6%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/ae/77706.jpg?v=727942298" />
Image Source: Zacks Investment Research
<h2>Stocks to Consider</h2>
Some better-ranked stocks from the broader technology space are Unisys Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uis#NYSE">UIS</a>), ANSYS, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/anss#NASDAQ">ANSS</a>) and Adobe Inc.&nbsp;UIS presently sports a Zacks Rank #1 (Strong Buy), whereas ANSS &amp; ADBE carry a Zacks Rank #2 (Buy).
Unisys Corporation delivered an earnings surprise of 87.7%, on average, in the trailing four quarters. In the last reported quarter, UIS pulled off an earnings surprise of 143.2%. It has a long-term earnings growth expectation of 15%.
ANSYS delivered an earnings surprise of 4.8%, on average, in three of the trailing four quarters. In the last reported quarter, ANSS pulled off an earnings surprise of 28.9%. It has a long-term earnings growth expectation of 6.4%.
Adobe delivered an earnings surprise of 2.7%, on average, in the trailing four quarters. In the last reported quarter, ADBE pulled off an earnings surprise of 2.1%. It has a long-term earnings growth expectation of 13%.
<a href="https://www.zacks.com/stock/news/2335943/will-wix-s-efforts-to-expand-ai-product-line-up-boost-its-stock?cid=CS-BENZ-FT-analyst_blog|company_news_tech_sector-2335943">To read this article on Zacks.com click here.</a>

Will WIX's Efforts to Expand AI Product Line-Up Boost its Stock?

SAP SE&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sap#NYSE">SAP</a>) stock is continuing its upward trajectory, with a gain of 36.7% in the year to date compared with 13.3% and 6.2% growth of the S&amp;P 500 composite and the sub-industry, respectively.
The company is currently trading at a nearly 4.5% discount to its 52-week high of $221.24, reached on Aug. 29, 2024. This pullback from the recent peak might offer a strategic buying opportunity for investors looking to capitalize on potential gains.
With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) stock appears to be a solid investment option at the moment.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/ca/76992.jpg?v=735422294" />
Image Source: Zacks Investment Research
Apart from a favorable rank, SAP has a VGM Score of B. Per Zacks&#39; proprietary methodology, stocks with a combination of a Zacks Rank #1 (Strong Buy) or 2 and Growth Score of A or B offer solid investment opportunities.
<h2>SAP&#39;s Thriving Cloud Business</h2>
SAP has been concentrating on expanding its cloud business to become one of the leading players in the category. In the last reported quarter, the current cloud backlog &mdash; a key indicator of go-to-market success in cloud business &mdash; soared 28% (both at nominal and cc basis) to &euro;14.8 billion.
Increasing demand for Rise with SAP solution remains the biggest driver. This solution helps companies transform its business processes and operations to become more nimble, digital and intelligent. SAP solution continues to gain significant traction and will aid the company in driving its market share in the cloud ERP solutions space.
Rise with SAP will also help the company boost the uptake of its SAP S/4HANA solution by providing its customers with more options for implementation and support from certified partners. Momentum in other cloud offerings like Grow with SAP and SAP Datasphere, as well as strategic acquisitions and collaborations, bodes well for its cloud business.
In the second quarter of 2024, SAP&#39;s cloud revenues were &euro;4.15 billion, up 25% year over year on a non-IFRS basis (nominal and cc). The uptick resulted from notable 33% growth in Cloud ERP Suite revenues, highlighting the effectiveness of SAP&#39;s Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) solutions.
SAP&#39;s cloud business strength was prominent across India, Japan, South Korea, Germany, Brazil and Canada. This business strength also remained strong in the United States, Saudi Arabia and China.
<h2>SAP&#39;s Robust Outlook for Cloud Business</h2>
Given the strong momentum in the cloud business, management anticipates 2024 cloud revenues in the range of &euro;17-&euro;17.3 billion, which indicates an increase of 24-27% at cc on a year-over-year basis. Cloud and software revenues are expected to be between &euro;29 billion and &euro;29.5 billion, respectively, which implies 8-10% growth at cc on a year-over-year basis. 
SAP expects cloud revenues of more than &euro;21.5 billion and total revenues of more than &euro;37.5 billion for 2025.
<h2>SAP Focused on Generative AI</h2>
SAP remains optimistic about the generative AI trend. In April 2024, SAP announced significant advancements in AI for supply chain solutions, aiming to redefine productivity and efficiency in manufacturing sectors. The company announced a collaboration with IBM and Amazon Web Services to make strides in GenAI capabilities and unlock potential business opportunities.
Management announced that it would focus on vital strategic growth areas, especially Business AI and position the company for growth, earlier in 2024. SAP intensified its restructuring efforts, expecting total expenses of roughly &euro;3 billion. This initiative is crucial for aligning SAP&#39;s workforce and resources with long-term business strategies.
Nonetheless, softness in the Software license and support business segment coupled with global macroeconomic weakness are concerning. Increasing costs and stiff competition in the cloud space are additional headwinds.
<h3>SAP&#39;s Estimates Northbound</h3>
The Zacks Consensus Estimate for SAP&#39;s 2024 and 2025 revenues is pegged at $36.7 billion and $40.6 billion, respectively, which indicates growth of 8.8% and 10.6% from the year-ago levels.
The consensus estimate for 2024 EPS is pegged at $4.83. For 2025 EPS, the consensus estimate is anticipated at $6.33, implying a rise of 31.2 % from the prior-year actual.
The Zacks Consensus Estimate for 2024 and 2025 EPS has increased 5% and 3.3%, respectively, in the past 60 days, reflecting analysts&#39; optimism.
<h2>Other Stocks to Consider</h2>
Some other top-ranked stocks worth consideration in the broader technology space are Manhattan Associates (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/manh#NASDAQ">MANH</a>), Adobe (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/adbe#NASDAQ">ADBE</a>) and ANSYS (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/anss#NASDAQ">ANSS</a>). While Manhattan Associates sports a Zacks Rank #1, Adobe and ANSYS carry a Zacks Rank #2 each, at present.
The Zacks Consensus Estimate for Adobe&#39;s fiscal 2024 EPS is pegged at $18.16, unchanged in the past 30 days. ADBE&#39;s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.7%. The long-term earnings growth rate is 13%. Its shares have declined 0.2% in the past year.
The Zacks Consensus Estimate for ANSS&#39; 2024 earnings is pegged at $9.96, unchanged in the past 30 days. ANSS&#39; earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing the mark once, with the average surprise being 4.8%. Its shares have declined 3.2% in the past year.
The Zacks Consensus Estimate for MANH&#39;s 2024 EPS is pegged at $4.26, unchanged in the past 30 days. MANH&#39;s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 26.6%. The stock has surged 23.4% in the past year.
<a href="https://www.zacks.com/stock/news/2333400/sap-stock-surges-37-year-to-date-will-the-rally-continue?cid=CS-BENZ-FT-analyst_blog|price_surge_/_plunge-2333400">To read this article on Zacks.com click here.</a>

Earnings Beats

Management

ADBE

SAP Stock Surges 37% Year to Date: Will the Rally Continue?

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Shares of software companies are trading lower amid overall market weakness. Weakness may be due to August's ISM Manufacturing PMI data indicating an economic contraction.

Ansys's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANSS#NYSE">ANSS</a>) short percent of float has risen 12.95% since its last report. The company recently reported that it has 1.45 million shares sold short, which is 2.18% of all regular shares that are available for trading. Based on its trading volume, it would take traders 3.18 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Ansys Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725386421_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Ansys has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Ansys's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Ansys's peer group average for short interest as a percentage of float is 2.63%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

How Is The Market Feeling About Ansys?

Ciena Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cien#NYSE">CIEN</a>) and Arelion have achieved a milestone with the world&#39;s first 1.6 terabits-per-second (Tb/s) wavelength data transmission in a live network field trial. Utilizing Ciena&#39;s advanced WaveLogic 6 Extreme (WL6e), this achievement took place over Arelion&#39;s 470km route connecting its Ashburn, Virginia (Equinix) and Telxius&#39; Virginia Beach cable landing station. This success has significantly boosted capacity between these key Points-of-Presence (PoPs) in Arelion&#39;s North American network.
Arelion addresses connectivity issues for multinational enterprises dependent on digital infrastructure across the globe. It offers IP services for unlimited global Internet access and provides enterprise, networking, and mobile data solutions to connect critical content and applications to audiences worldwide.
This data transmission boosts the performance of Arelion&#39;s leading optical transmission services, including high-speed Managed Optical Fiber Services and Wavelengths for service providers, content providers as well as enterprises. Following its recent trial, Arelion will deploy Ciena&#39;s WL6e across its network to meet the growing bandwidth demands of 5G, AI/ML applications, cloud services, and content delivery for wholesale and enterprise customers.
The use of coherent digital signal processing innovations boosts energy performance and efficiency for WL6e. It offers Arelion a 50% reduction in space and power per bit, along with a 15% improvement in spectral efficiency compared to previous generations, added CIEN. With WL6e, Arelion can provide multiple 400 and 800 gigabits-per-second (Gb/s) services, leveraging 1.6 Tb/s line capacity to support higher traffic volumes and faster connectivity speed across its existing network.
Ciena&#39;s open, programmable 6500 Reconfigurable Line System (&quot;RLS&quot;) was also utilized in the demonstration. RLS simplifies and automates network service provisioning and reconfiguration. Together, these innovations reinforce Arelion&#39;s commitment to open optical networking and next-generation coherent optic solutions, driving improvements in performance, energy efficiency and cost savings.
<div class="chart_embed">
<h3>Ciena Corporation Price and Consensus</h3>
<img alt="Ciena Corporation Price and Consensus" src="https://staticx-tuner.zacks.com/images/charts/ad/1725026395.png" style="height:265px; width:574px" title="" />
Ciena Corporation price-consensus-chart | Ciena Corporation Quote
As the industry&#39;s first 1.6 Tb/s coherent optic solution, Ciena&#39;s WaveLogic 6 Extreme introduces cutting-edge capabilities for optical transport. With Arelion at the forefront, this milestone sets a benchmark for other service providers aiming to enhance energy efficiency and scalability in their optical networks to meet rising bandwidth demands, added Ciena.
</div>
Ciena is one of the leading providers of optical and routing systems, services and automation software worldwide. It builds highly adaptive networks to meet increasing digital demands and deliver richer, more connected user experiences.
Ciena&#39;s revenues for the second quarter of fiscal 2024 decreased 19.6% year over year, totaling $910.8 million. This decline was due to a slower-than-expected recovery of order volumes from service providers who are still working through large inventory absorption.
Nonetheless, demand for bandwidth remained strong owing to higher cloud adoption and the proliferation of AI technology use cases.
<h2>CIEN&#39;S Zacks Rank &amp; Stock Price Performance</h2>
CIEN currently carries a Zacks Rank #3 (Hold). Shares of the company have risen 13.5% in the past year compared with the sub-industry&#39;s growth of 13.2%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/38/76131.jpg?v=1702104680" /> 
Image Source: Zacks Investment Research
<h2>Stocks to Consider&nbsp;</h2>
Some better-ranked stocks from the broader technology space are Manhattan Associates, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/manh#NASDAQ">MANH</a>), ANSYS, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/anss#NASDAQ">ANSS</a>) and Adobe Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/adbe#NASDAQ">ADBE</a>).&nbsp; MANH presently sports a Zacks Rank #1 (Strong Buy), while ANSS and ADBE carry a Zacks Rank #2 (Buy) each.
Manhattan Associates delivered an average earnings surprise of 26.6% in the trailing four quarters. In the last reported quarter, MANH pulled off an earnings surprise of 22.9%. The Zacks Consensus Estimate for 2024 earnings has increased 9.2% in the past 60 days to $4.26.
ANSYS delivered a trailing four-quarter average earnings surprise of 4.8%. In the last reported quarter, ANSS pulled off an earnings surprise of 28.9%. It has a long-term earnings growth expectation of 6.4%.
Adobe delivered a trailing four-quarter average earnings surprise of 2.7%. In the last reported quarter, ADBE pulled off an earnings surprise of 2.1%. It has a long-term earnings growth expectation of 13%.
<a href="https://www.zacks.com/stock/news/2329685/ciena-arelion-reach-live-1-6-tb-s-wave-data-transmission-milestone?cid=CS-BENZ-FT-analyst_blog|company_news_tech_sector-2329685">To read this article on Zacks.com click here.</a>

CIEN

Ciena & Arelion Reach Live 1.6 Tb/s Wave Data Transmission Milestone

NetApp, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ntap#NASDAQ">NTAP</a>) has introduced new capabilities to bolster VMware Cloud Foundation deployments. These enhancements will allow mutual customers to optimize their IT environments for efficient scaling of VMware workloads.
These offerings are built on last month&#39;s enhancements to NetApp BlueXP disaster recovery service, which now includes guided workflows for automating disaster recovery plans for VMware workloads in hybrid cloud environments, with new support for VMFS datastores.
Customers of both NetApp and Broadcom can now simplify VCF hybrid cloud environments with NetApp ONTAP software. It will also support all storage needs and incorporate SnapMirror active sync for enhanced data replication and availability. For those migrating to the cloud, NetApp&#39;s Spot Eco with Azure VMware Solution (AVS) reserved instances and Azure NetApp Files offer significant cost savings. Additionally, the expanded Cloud Insights VM Optimization features help reduce costs, improve VM density and ensure optimal performance and adherence to configuration.
For more than a decade, NetApp has been a key engineering design partner with VMware, recently acquired by Broadcom Inc. The company continues to drive innovation in highly available, scalable and performant storage as a design partner for VMware&#39;s Next-Generation vSphere Virtual Volumes.
NetApp and Broadcom joined forces to eliminate uncertainty in hybrid cloud environments. With more than 20,000 customers depending on NetApp for VMware workload support, NetApp emphasized that its ongoing collaboration with Broadcom, following VMware&#39;s acquisition, guarantees seamless integration of their solutions. This ensures that mutual customers can efficiently utilize a unified, &quot;intelligent data infrastructure&quot; for their VMware operations.
<div class="chart_embed">
<h3>NetApp, Inc. Price and Consensus</h3>
<img alt="NetApp, Inc. Price and Consensus" src="https://staticx-tuner.zacks.com/images/charts/e6/1724940372.png" style="height:265px; width:581px" title="" />
NetApp, Inc. price-consensus-chart | NetApp, Inc. Quote
This collaboration with NetApp also enables their mutual customers to deploy cutting-edge data and storage services on their private cloud platforms, ensuring they maximize the value of their VMware environments, Broadcom added.
Based in San Jose, CA, NetApp provides enterprise storage as well as data management software and hardware products and services.
The company recently reported first-quarter fiscal 2025 revenues of $1.54 billion, marking an 8% year-over-year increase and exceeding the Zacks Consensus Estimate by 0.46%. This growth was driven by a 40% year-over-year surge in revenues from first-party and marketplace cloud storage services. The company also reported non-GAAP earnings of $1.56 per share, up 35.7% and surpassing the Zacks Consensus Estimate of $1.46.
</div>
<h2>NTAP&#39;S Zacks Rank &amp; Stock Price Performance</h2>
Currently, NTAP carries a Zacks Rank #2 (Buy). Shares of the company have gained 72.5% compared with the sub-industry&#39;s growth of 55.9%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/7a/75964.jpg?v=1229461314" />
Image Source: Zacks Investment Research
<h2>Other Stocks to Consider</h2>
Some other top-ranked stocks from the broader technology space are Manhattan Associates, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/manh#NASDAQ">MANH</a>), ANSYS, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/anss#NASDAQ">ANSS</a>) and Adobe Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/adbe#NASDAQ">ADBE</a>).&nbsp;MANH presently sports a Zacks Rank #1 (Strong Buy) each, whereas ANSS &amp; ADBE carry a Zacks Rank #2.
Manhattan Associates delivered an earnings surprise of 26.6%, on average, in the trailing four quarters. In the last reported quarter, MANH pulled off an earnings surprise of 22.9%. The Zacks Consensus Estimate for MANH increased 9.2% in the past 60 days to $4.26.
ANSYS delivered an earnings surprise of 4.8%, on average, in three of the trailing four quarters. In the last reported quarter, ANSS pulled off an earnings surprise of 28.9%. It has a long-term earnings growth expectation of 6.4%.
Adobe delivered an earnings surprise of 2.7%, on average, in the trailing four quarters. In the last reported quarter, ADBE pulled off an earnings surprise of 2.1%. It has a long-term earnings growth expectation of 13%.
<a href="https://www.zacks.com/stock/news/2329115/netapp-unveils-capabilities-to-enhance-vmware-cloud-deployments?cid=CS-BENZ-FT-analyst_blog|company_news_tech_sector-2329115">To read this article on Zacks.com click here.</a>

NTAP

NetApp Unveils Capabilities to Enhance VMware Cloud Deployments

Simulations Plus, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/slp#NASDAQ">SLP</a>) has streamlined its business unit and leadership structure to foster growth after recent acquisitions. These updates will be implemented on Aug 30, 2024.
Over the past year, Simulations Plus made two major acquisitions, including the largest in its corporate history. In June 2024, the company acquired Pro-ficiency Holdings, Inc. and its subsidiaries from QHP Capital and its minority shareholders for about $100 million, expanding its footprint across the drug development continuum, from pre-clinical protocols to product commercialization. This acquisition doubled Simulations Plus&#39; addressable market by adding $4 billion in revenue opportunities within the clinical simulations training, analytics and medical communications sectors.
Building on this recent acquisition, Simulations Plus is focusing on optimizing its resources and people. The company is establishing two new business units &mdash; Adaptive Learning &amp; Insights and Medical Communications &mdash; to improve client engagement. Additionally, the Regulatory Strategies unit will transition into a Regulatory Strategies Center of Excellence to enhance sales visibility and accelerate cross-selling opportunities.
These strategic moves aim to strengthen Simulations Plus&#39; position across the drug development continuum, driving growth and profitability, the company added.
Simulations Plus announced key leadership promotions. Steven Chang is elevated to president of Quantitative Systems Pharmacology following his arrival with the Immunetrics acquisition in June 2023. Jenna Rouse will lead the new Adaptive Learning &amp; Insights unit as president, having served as chief markets officer, Clinical, at Pro-ficiency. Murry Alper will become president of the new Medical Communications unit, also joining through the Pro-ficiency acquisition.
<div class="chart_embed">
<h3>Simulations Plus, Inc. Price and Consensus</h3>
<img alt="Simulations Plus, Inc. Price and Consensus" src="https://staticx-tuner.zacks.com/images/charts/8a/1724680280.png" style="height:265px; width:574px" title="" />
Simulations Plus, Inc. price-consensus-chart | Simulations Plus, Inc. Quote
The company further announced the departure of Brett Howell, president of Quantitative Systems Pharmacology, and Michael Raymer, president of Clinical Simulations &amp; Medical Communications, who will leave after aiding in the transition.
Simulations Plus is a leading-edge developer of simulation software for pharmaceutical, chemical and biotechnology companies across the globe. The simulation software is used for drug discovery, development, research and regulatory submissions.
In the third quarter of fiscal 2024, the company&#39;s revenues increased 14% year over year to $18.5 million, primarily due to higher software revenues in the Clinical Pharmacology &amp; Pharmacometrics and Cheminformatics business units.
However, sales of the PBPK unit, part of the services segment, were down 10% as the temporary delays in acquiring client source data deferred the initiation of contracted projects. SLP has also opted to discontinue the quarterly cash dividend and redirect these funds towards growth initiatives to boost long-term shareholder value.
Currently, Simulations Plus carries a Zacks Rank #4 (Sell). Shares of the company have lost 19.4% compared with the sub-industry&#39;s growth of 24.7%.
</div>
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<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/6f/75438.jpg?v=1950690958" />
Image Source: Zacks Investment Research
<h2>Stocks to Consider</h2>
Manhattan Associates, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/manh#NASDAQ">MANH</a>), sporting a Zacks Rank #1 (Strong Buy) at present, has delivered an earnings surprise of 26.6%, on average, in the trailing four quarters. In the last reported quarter, MANH delivered an earnings surprise of 22.9%.
ANSYS, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/anss#NASDAQ">ANSS</a>), carrying a Zacks Rank #2 (Buy) at present, has delivered an earnings surprise of 4.8%, on average, in three of the trailing four quarters. In the last reported quarter, ANSS delivered an earnings surprise of 28.9%. It has a long-term earnings growth expectation of 6.4%.
Adobe Inc., carrying a Zacks Rank #2 at present, has delivered an earnings surprise of 2.7%, on average, in the trailing four quarters. In the last reported quarter, ADBE delivered an earnings surprise of 2.1%. It has a long-term earnings growth expectation of 13%.
<a href="https://www.zacks.com/stock/news/2327227/simulations-plus-slp-restructures-business-unit-post-acquisitions?cid=CS-BENZ-FT-analyst_blog|company_news_tech_sector-2327227">To read this article on Zacks.com click here.</a>

Dividends

Simulations Plus Restructures Business Unit Post-Acquisitions

Ansys's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANSS#NYSE">ANSS</a>) short percent of float has fallen 18.22% since its last report. The company recently reported that it has 1.28 million shares sold short, which is 1.93% of all regular shares that are available for trading. Based on its trading volume, it would take traders 3.22 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Ansys Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1723841110_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Ansys has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Ansys's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Ansys's peer group average for short interest as a percentage of float is 2.67%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

(ANSS) - Analyzing Ansys's Short Interest

Wix.com&#39;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wix#NASDAQ">WIX</a>) shares have been performing well on the trading front, with a gain of 32.5% year to date compared with the S&amp;P 500 composite and sub-industry&#39;s growth of 16.2% and 1.8%, respectively.
The stock has gained 4.2% since announcing solid second-quarter 2024 results on Aug 7. The stock is still trading 8.7% below its 52-week high of $178.65, which makes it relatively affordable for investors.
Headquartered in Tel Aviv, Israel and founded in 2006, WIX is a cloud-based web development platform. It offers solutions that enable businesses, organizations, professionals and individuals to develop customized websites and application platforms and grow the companies&#39; online presence.
The company&#39;s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters with the average surprise being 29.8%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/36/74490.jpg?v=1273220810" />
Image Source: Zacks Investment Research
<h3>WIX Studio &amp; AI Strategy Propelling Growth</h3>
Increasing adoption of the product portfolio, especially various AI products and WIX Studio, has been driving WIX&#39;s performance. The addition of new features and enhancements to WIX Studio is driving its uptake. Management highlighted that the number of Studio accounts and rate of new Partners joining the Wix platform through Studio continues to better expectations.
The addition of new AI-powered offerings to its product portfolio is another tailwind. WIX is also focusing on embedding AI assistants across its platform and has released 17 AI business assistants so far.
In June 2024, Wix launched advanced AI creation capabilities for its mobile app builder. The initiative is set to empower users to effortlessly craft professional and fully customizable applications. By leveraging AI technology, it revolutionizes the way business apps for iOS and Android can be designed and altered.
The company also expanded the availability of its AI Website Builder in different languages. Besides English, AI Website Builder is now available to global users in French, German, Portuguese, Spanish, Italian, Japanese, Turkish and Korean. This initiative aids users in building websites in their preferred language.
WIX&#39;s second-quarter total revenues increased 12% year over year to $435.7 million and beat the Zacks Consensus Estimate of $433.6 million. Bookings of $458.4 million improved 15% year over year. Creative Subscriptions&#39; bookings increased 12% year over year to $329 million. Business Solutions&#39; bookings rose 24% to $129.4 million.
Partners revenues in the second quarter were $148.4 million, or 34% of total revenues, up 29% year over year. The increase was driven by market share gains resulting from the onboarding of new agencies and freelancers.
<h3>Outlook Revised</h3>
Continued strong momentum in the first half of 2024 led WIX to upgrade the outlook for bookings, revenues and free cash flow for the year.
Total bookings are expected between $1,802 million and $1,822 million, compared with a previous range of $1,796-$1,826 million.
Total revenues are now expected to be in the range of $1,747-$1,761 million (previous projection:&nbsp; $1,738 million to $1,761 million).
Free cash flow, excluding headquarters costs, is expected between $460 million and $470 million, or 26-27% of revenues in 2024. Earlier, free cash flow was expected in the range of $445-$455 million, or 26% of revenues.
<h3>Estimates Moving North</h3>
The estimates have also moved northward in the past 60 days. The Zacks Consensus Estimate for 2024 and 2025 earnings per share has increased 7.3% and 2.4%, respectively, reflecting analysts&#39; optimism.
The estimated figures for 2024 and 2025 EPS, $5.86 and $6.93, indicate a rise of 33.5% and 18.3%, respectively, from the prior-year actuals. The long-term earnings growth rate is 22.4%.
The Zacks Consensus Estimate for WIX&#39;s 2024 and 2025 revenues is pegged at $1.75 billion and $1.99 billion, respectively, which indicates growth of 12.4% and 13.2% from the year-ago levels.
<h3>Headwinds Persist</h3>
However, unfavorable foreign currency movement and weak global macroeconomic conditions are headwinds.
Increasing investments in product development, infrastructure and platform, along with stiff competition in the e-commerce marketplace, remain concerns for this Zacks Rank #3 (Hold) stock.
<h3>Stocks to Consider</h3>
Some better-ranked stocks worth consideration in the broader technology space are Badger Meter (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>), Manhattan Associates (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/manh#NASDAQ">MANH</a>) and ANSYS (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/anss#NASDAQ">ANSS</a>). Badger Meter and Manhattan Associates sport a Zacks Rank #1 (Strong Buy) each, while ANSYS carries a Zacks Rank #2 (Buy), at present.
The Zacks Consensus Estimate for Badger Meter&#39;s 2024 EPS is pegged at $4.06, up 4.4% in the past 30 days. BMI&#39;s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.9%. The long-term earnings growth rate is 17.9%. Its shares have risen 26.1% in the past year.
The Zacks Consensus Estimate for ANSS&#39; 2024 earnings is pegged at $9.72, up 3.7% in the past 30 days. ANSS&#39; earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once, with the average surprise being 4.8%. Its shares have risen 12.1% in the past year.
The Zacks Consensus Estimate for MANH&#39;s 2024 EPS is pegged at $4.26. MANH&#39;s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 26.6%. The stock has surged 37.7% in the past year.
<a href="https://www.zacks.com/stock/news/2323236/wix-stock-soars-33-year-to-date-will-the-rally-continue?cid=CS-BENZ-FT-analyst_blog|price_surge_/_plunge-2323236">To read this article on Zacks.com click here.</a>

WIX Stock Soars 33% Year to Date: Will the Rally Continue?

Onto Innovation&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/onto#NYSE">ONTO</a>) shares have been performing well on the trading front, with a gain of 30.3% year to date compared with the S&amp;P 500 composite&#39;s and sub-industry&#39;s growth of 14.1% and 28.5%, respectively.
Solid financial performance has been aiding the stock&#39;s trajectory. The stock has gained 12% since announcing second-quarter fiscal 2024 results on Aug 8.
ONTO outpaced estimates in each of the trailing four quarters, with the average surprise being 6.6%.
The stock is trading down 16.7% from its 52-week high of $238.13, indicating further upside potential.
Headquartered in Wilmington, MA, Onto Innovation specializes in the design, development, manufacture and support of metrology and inspection tools primarily for semiconductor device fabricators, silicon wafer manufacturers and advanced packaging manufacturers in the semiconductor space.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/9f/74399.jpg?v=81156687" />
Image Source: Zacks Investment Research
<h3>Factors Driving Growth</h3>
Onto Innovation&#39;s performance is gaining from increasing demand for its Dragonfly inspection system. Its Dragonfly G3 platform integrates 2D and 3D technologies to identify yield-killing defects and compute features, which are important for advanced front-end and packaging technologies.
The system is witnessing strong adoption owing to higher demand for advanced packaging of AI computing devices.
In the last reported quarter, total revenues of $242.3 million beat the Zacks Consensus Estimate by 2.9%. The top line expanded 27.1% year over year. The uptick was largely driven by the expansion of pilot lines for high-performance computing, which incorporates cutting-edge gate-all-around transistor architecture and high-bandwidth memory to support the growing demand in the AI sector.
Revenues surpassed the high end of the company&#39;s guided range of $230-$240 million. Management highlighted record revenues of $164 million from its specialty and advanced packaging customers. This growth was driven by demand from the company&#39;s AI packaging customers.
ONTO secured more than $300 million in volume purchase agreements from two major customers. These agreements, which extend through 2025, pertain to investments in AI advanced packaging and gate-all-around technologies.
Healthy momentum in advanced nodes sales was driven by the success of ONTO&#39;s Atlas and Iris systems. These systems are pivotal in supporting emerging gate-all-around devices. 
In addition, ONTO bolstered its product portfolio with the introduction of the JetStep X500 lithography tool, specifically crafted for next-generation glass substrates used in panel-level packaging. The addition of these sensors will enable its users to collect important data needed to mature their process in a relatively shorter time.
The company remains focused on inventory reduction to boost cash-flow performance. Improvements in supply-chain initiatives are expected to drive margin performance.
For the third quarter, the management expects revenues in the range of $245-$255 million. For the second half, it now expects revenues to be 5-10% stronger than the first half of 2024.
ONTO expects revenues to gain from increasing investments in gate-all-around capacity, and capacity expansions by several high-bandwidth memory and logic packaging manufacturers in 2025.
<h3>Headwinds Persist</h3>
Nonetheless, weak global macro conditions, forex fluctuations and fierce competition are concerns for this Zacks Rank #3 (Hold) stock.
Increasing expenses is likely to weigh on the margin performance. For the third quarter of 2024, it expects operating expenses in the range of $64-$66 million amid higher research and development expenses.
<h3>A Look at Estimates</h3>
The Zacks Consensus Estimate for ONTO&#39;s 2024 and 2025 revenues is pegged at $968.9 million and $1.1 billion, respectively, indicating growth of 18.8% and 13.4% from the year-ago levels.
The consensus estimate for 2024 and 2025 EPS implies a rise of 37% and 22%, respectively, from the prior-year actuals to $5.11 and $6.24.
The consensus mark for 2024 EPS has increased 2%, in the past 90 days.
<h3>Stocks to Consider</h3>
Some better-ranked stocks worth consideration in the broader technology space are Badger Meter (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>), Manhattan Associates (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/manh#NASDAQ">MANH</a>) and ANSYS (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/anss#NASDAQ">ANSS</a>). Badger Meter and Manhattan Associates sport a Zacks Rank #1 (Strong Buy) each, while ANSYS carries a Zacks Rank #2 (Buy), at present.
The Zacks Consensus Estimate for Badger Meter&#39;s 2024 EPS is pegged at $4.06, up 4.4% in the past 30 days. BMI&#39;s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.9%. The long-term earnings growth rate is 17.9%. Its shares have risen 17.1% in the past year.
The Zacks Consensus Estimate for ANSS&#39; 2024 earnings is pegged at $9.72, up 3.7% in the past 30 days. ANSS&#39; earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once, with the average surprise being 4.8%. Its shares have risen 7.7% in the past year.
The Zacks Consensus Estimate for MANH&#39;s 2024 EPS is pegged at $4.26. MANH&#39;s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 26.6%. The stock has surged 30.7% in the past year.
<a href="https://www.zacks.com/stock/news/2322399/onto-innovation-onto-soars-30-ytd-will-the-rally-last?cid=CS-BENZ-FT-analyst_blog|price_surge_/_plunge-2322399">To read this article on Zacks.com click here.</a>

ONTO

Onto Innovation Soars 30% YTD: Will the Rally Last?

Itron&#39;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/itri#NASDAQ">ITRI</a>) shares have been performing well on the trading front, with a gain of 33.1% year to date compared with 19.2% and 2.5% growth of the S&amp;P 500 composite and the sub-industry, respectively.&nbsp;
The stock is down 16.4% from its 52-week high level of $113.07, reflecting further potential upside.
Headquartered in Liberty Lake, WA, Itron is one of the leading global suppliers of a wide range of standard, advanced and smart meters and meter communication systems. It also provides networks and communication modules, software, services and sensors for the effective management of electricity, gas and water resources for its consumers.
With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) stock appears to be a solid investment option at present.
Apart from a favorable rank, ITRI has a Growth Score of B. Per Zacks&#39; proprietary methodology, stocks with a combination of a Zacks Rank #1 (Strong Buy) or 2 and&nbsp; a Growth Score of A or B offer solid investment opportunities.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/90/74132.jpg?v=1310954533" />
Image Source: Zacks Investment Research
The company&#39;s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters with an average surprise of 57%.
&nbsp;
<h3>Steady Demand Trends</h3>
Steady market demand remains the primary catalyst. The company recently posted its second-quarter 2024 results wherein revenues of $609 million beat the Zacks Consensus Estimate of $600 million. The top line expanded 13% (up 13% at constant currency) year over year.
Successful operational execution and conversion of previously constrained revenues aided the top-line growth. Itron&#39;s bookings were $447 million, and its backlog amounted to $4.1 billion at the end of the reported quarter.
Networked Solutions&#39; revenues totaled $412.7 million (67.8%), up 14% year over year, driven by current and new project deployments. Outcomes&#39; revenues of $77.8 million (12.8%) increased 16% on a year-over-year basis attributed to higher recurring and one-time services revenues.
Momentum in the Grid Edge Intelligence platform augurs well. The platform&#39;s growth is being driven by various factors, including data center-related demand growth, reindustrialization and production localization, as well as electrification of transportation and homes. Itron added that automation of water infrastructure, safety applications for gas customers and the digitalization of its operations were other growth drivers.
Also, the acquisition of Elpis Squared expanded the Grid Edge Intelligence platform&#39;s solutions. Management noted that its customers are increasingly deploying new digital technology and non-wires grid solutions. This represents a strong opportunity for ITRI.
<h3>Solid Outlook</h3>
Itron anticipates 2024 bookings to result in a book-to-bill ratio of at least 1:1.
For the third quarter of 2024, ITRI expects revenues to be between $590 million and $600 million. Non-GAAP EPS is anticipated to be in the range of $1.10-$1.20. The Zacks Consensus Estimate for both top and bottom lines is pegged at $597 million and $1.10 per share.
The company has revised its full-year revenue outlook for 2024. Management now projects revenues to be between $2.385 billion and $2.415 billion compared with earlier guidance of $2.275 to $2.375 billion.
Non-GAAP EPS is currently estimated in the $4.45-$4.65 band compared with of $3.40-$3.80 projected in February 2024.
<h3>Estimates Northward Bound</h3>
The Zacks Consensus Estimate for ITRI&#39;s 2024 and 2025 revenues is pegged at $2.41 billion and $2.5 billion, respectively, indicating growth of 10.8% and 3.8% from the year-ago levels.
The consensus estimated figures for 2024 and 2025 EPS are expected to rise 33.3% and 3.6% from the prior-year actuals of $4.48 and $4.64, respectively.
The figures of consensus mark for 2024 and 2025 EPS have increased 12% and 5.9%, respectively, in the past 60 days, reflecting analysts&#39; optimism.
ITRI&#39;s long-term earnings growth rate is pegged at 26%.
<h3>Headwinds Persist</h3>
However, rising operating expenses and stiff competition amid a soft macroeconomic backdrop remain concerns.
In the second quarter of 2024, non-GAAP operating expenses of $141.1 million jumped 6.6% year over year due to higher sales and general and administrative costs. These factors might exert pressure on the margins, at least in the near term.
Itron also has a leveraged balance sheet. As of Jun 30, 2024, the company&#39;s cash and cash equivalents totaled $920.6 million. Long-term debt at the end of the second-quarter 2024 was $1.24 billion.
<h3>Other Stocks to Consider</h3>
Other top-ranked stocks worth consideration in the broader technology space are Badger Meter (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>), Manhattan Associates (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/manh#NASDAQ">MANH</a>) and ANSYS (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/anss#NASDAQ">ANSS</a>). Badger Meter and Manhattan Associates sport a Zacks Rank #1 each, while ANSYS carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Badger Meter&#39;s 2024 EPS is pegged at $4.06, up 4.4% in the past 30 days. BMI&#39;s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.9%. The long-term earnings growth rate is 17.9%. Its shares have risen 12.5% in the past year.
The Zacks Consensus Estimate for ANSS&#39; 2024 earnings is pegged at $9.72, up 3.7% in the past 30 days. ANSS&#39; earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once, with the average surprise being 4.8%. Its shares have risen 3.3% in the past year.
The Zacks Consensus Estimate for MANH&#39;s 2024 EPS is pegged at $4.26. MANH&#39;s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 26.6%. The stock has surged 28.4% in the past year.
<a href="https://www.zacks.com/stock/news/2321144/itron-itri-stock-up-33-1-in-a-year-will-the-rally-continue?cid=CS-BENZ-FT-analyst_blog|price_surge_/_plunge-2321144">To read this article on Zacks.com click here.</a>

Guidance

ITRI

Itron Stock Up 33.1% in a Year: Will the Rally Continue?

Will The Next Batch Of Tech Earnings Encourage Investors To Rotate Back In?

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
A research report from 2017 indicates that mergers and acquisitions have <a href="https://www.sciencedirect.com/science/article/abs/pii/S0929119916302887">created more value</a> for acquiring firm shareholders post-2009 than ever before. This particularly holds true for mega deals worth $500 million or more.



It&rsquo;s likely that this research holds true today. Therefore, looking at companies that have impending mergers can be a good basis for stock selection. This column focuses on three merger stocks that are likely to fly higher once the deal is completed.



It&rsquo;s worth noting that the global value of <a href="https://www.bcg.com/publications/2024/m-and-a-market-insights-series-h1-2024">M&amp;A activity</a> in the first half of 2024 was $1 trillion. On a year-on-year basis, M&amp;A activity has increased. Further, there were 10 megadeals ($10 billion or higher) in Q1 2024. With significant level of M&amp;A activity, there will be potential value creators on the back of merger synergies.



Let&rsquo;s discuss three merger stocks that are poised to trend higher once the merger is closed.



<h2>Chevron Corporation (CVX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/09/cvx-stock-10-300x169.jpg" alt="CVX stock"><div>Source: tishomir / Shutterstock.com</div></div>Chevron Corporation (NYSE:<a href="https://investorplace.com/stock-quotes/cvx-stock-quote/">CVX</a>) stock has been sideways over the last 12 months. The 4.13% dividend yield stock looks attractive from a valuation perspective. Further, there are two potential catalysts that can translate into a big rally for CVX stock.



First, there is a possibility of multiple rate cuts in the next 12 to 18 months. Expansionary policies are positive for energy prices and as oil trends higher, I expect CVX stock to rally.



Further, in Oct. 2023, Chevron had <a href="https://www.chevron.com/newsroom/2023/q4/chevron-announces-agreement-to-acquire-hess">announced a deal</a> to acquire Hess Corporation (NYSE:<a href="https://investorplace.com/stock-quotes/hes-stock-quote/">HES</a>) for a consideration of $53 billion. This deal was <a href="https://www.cnbc.com/2024/05/28/hess-shareholders-to-vote-on-chevron-deal-amid-guyana-dispute-with-exxon.html">approved</a> by Hess shareholders in May 2024. &nbsp;



However, the U.S. Federal Trade Commission has <a href="https://www.bloomberg.com/news/articles/2024-07-11/chevron-hess-decision-delayed-by-ftc-to-after-exxon-arbitration">delayed the decision</a> on the merger until after an arbitration case with Exxon Mobil (NYSE:<a href="https://investorplace.com/stock-quotes/xom-stock-quote/">XOM</a>). It&rsquo;s likely to happen eventually, but the delay is a good opportunity to accumulate CVX stock.



Leaving this merger aside, Chevron has an investment grade balance sheet and low break-even assets. The cash flow outlook for this merger stock is robust for the coming years coupled with value creation through dividends and share repurchase.



<h2>Synopsys (SNPS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/03/snps1600-300x169.png" alt="Person holding mobile phone with logo of American technology company Synopsys Inc. (SNPS) on screen in front of web page. Focus on phone display. Unmodified photo."><div>Source: T. Schneider / Shutterstock.com</div></div>Synopsys (NASDAQ:<a href="https://investorplace.com/stock-quotes/snps-stock-quote/">SNPS</a>) is a provider of electronic design automation software products that are used to design and test integrated circuits. It&rsquo;s worth noting that SNPS stock touched 52-week high of $630. From those levels, the stock has corrected by 13%. I see this as a good opportunity to accumulate.



In January, Synopsys announced the acquisition of Ansys (NASDAQ:<a href="https://investorplace.com/stock-quotes/anss-stock-quote/">ANSS</a>) for a <a href="https://news.synopsys.com/2024-01-16-Synopsys-to-Acquire-Ansys,-Creating-a-Leader-in-Silicon-to-Systems-Design-Solutions">consideration of $35 billion</a>. The pending acquisition will combine leading players in semiconductor design technology and simulation and analysis.



Further, the total addressable market (TAM) for Synopsys <a href="https://investor.synopsys.com/news/news-details/2024/Synopsys-to-Acquire-Ansys-Creating-a-Leader-in-Silicon-to-Systems-Design-Solutions/default.aspx">will expand by 1.5x</a> to $28 billion. Analysts expect the combined TAM to grow at a CAGR of 11%. Clearly, Synopsys will experience healthy growth upon the completion of the acquisition in the first half of 2025.



Another point to note is that the merged entity is likely to deliver robust cash flows. This will help Synopsys deleverage with a target of 2x debt-to-adjusted-EBITDA within two years post-closing. As credit metrics improve, I expect SNPS to trend higher. Further, there is a strong case for healthy dividends in the next few years.



<h2>The Home Depot (HD)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/08/hd-stock-300x169.jpg" alt="Home Depot (HD) storefront on a sunny day"><div>Source: Jonathan Weiss / Shutterstock.com</div></div>The Home Depot (NYSE:<a href="https://investorplace.com/stock-quotes/hd-stock-quote/">HD</a>) stock has been relatively subdued in the last 12 months. This does not come as a surprise with macroeconomic headwinds and higher interest rates impacting growth. However, with the possibility of expansionary monetary policies, I expect HD stock to trend higher in the coming quarters.



Further, in March 2024, The Home Depot announced the acquisition of SRS Distribution. The latter is a leading residential specialty trade distribution company and the acquisition is for a consideration of $18.25 billion. Notably, they completed the merger last month. However, the real impact on the merger stock will be seen in the next 12 to 24 months when macroeconomic headwinds wane.



It&rsquo;s worth noting that prior to the merger, Home Depot had an addressable market of $50 billion. With the completion of the merger, the <a href="https://ir.homedepot.com/news-releases/2024/03-28-2024-100102814">addressable market has swelled</a> to $1 trillion. This puts into perspective the likely impact of the merger in the coming years.



On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines.</a>



On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
<div>Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/07/3-stocks-set-to-surge-higher-after-an-impending-merger-is-completed/">3 Stocks Set to Surge Higher After An Impending Merger is Completed</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

3 Stocks Set to Surge Higher After An Impending Merger is Completed

ANSYS Non-GAAP EPS of $2.50 beats by $0.56, revenue of $594.1M beats by $38.27M

Synopsys planned $35B acquisition of Ansys sees UK regulatory questions

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Top Merger Stocks Held By Fund Managers, Mid-Q3 2024

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Taiwan Semiconductor, Microsoft and Ansys team up to boost simulation of silicon photonic

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Press Releases

Ansys Multiphysics Signoff Solutions Certified for Samsung's 2nm Power Backside Delivery Technology

Ansys Listed in AWS "ICMP" for the US Federal Government

Ansys Launches STK Availability in AWS Marketplace

Ansys Works with Supermicro and NVIDIA to Deliver Unmatched Multiphysics Simulation with Turnkey Hardware

Ansys to Release Second Quarter 2024 Earnings on July 31, 2024

Ansys 2024 R2 Delivers Multiphysics Innovation Across Industries and Engineering Domains

Ansys Announces Q2 Financial Results

TSMC Collaborates with Ansys and Microsoft to Accelerate Photonic Simulations

TSMC Expands Collaboration with Ansys by Integrating AI Technology to Accelerate 3D-IC Design

Contracts

Liebherr, Ansys, and CADFEM Join Forces to Implement an Enterprise Simulation Strategy and Model-Based Engineering Approach

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PARTENAIRE / CONTRIBUTEUR

BENZINGA MONDIAL