What happened

Shares of engineering simulation specialist Ansys (NASDAQ:ANSS) rose 15.7% in November, according to data from S&P Global Market Intelligence. The month started with a fantastic third-quarter earnings report, followed by bullish analyst reports and a promising partnership with industrial tooling manufacturer Rockwell Automation (NYSE:ROK).

So what

In the third quarter, Ansys saw revenue rise 18% year over year to land at $346 million. Adjusted earnings increased by 8% to $1.42 per diluted share. The analyst consensus had been aimed at earnings near $1.26 per share on sales in the neighborhood of $334 million. It was no surprise to see Ansys' stock price rise after that report, further accelerated by a plethora of rosy analyst reports inspired by the strong earnings performance.

Near the end of November, Ansys also struck up a strategic partnership with Rockwell Automation that promises to streamline the digital twinning process for shared clients. This deal hooks Ansys' modeling platforms directly into Rockwell's manufacturing systems.

Computer rendering of steel machine parts, overlaid by a layer of numbers and calculations.

Image source: Getty Images.

Now what

The Rockwell partnership should help Ansys find new clients, given that the automation expert's annual revenues are nearly four times the size of Ansys'. Mind you, the stellar third-quarter report showed that there's nothing wrong with Ansys in the first place. Still, it never hurts to find a larger cross-marketing partner with Rockwell's global reach.

Ansys investors have pocketed a 77% return so far in 2019 and the stock trades at lofty valuation ratios such as 50 times trailing earnings and 47 times free cash flows. But the company is addressing a gargantuan target market that should grow even larger over time as companies of every ilk get used to the idea of using computer simulations to simplify and accelerate their engineering processes. It's not too late to buy this skyrocketing stock, even at these rarefied prices.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.