DSGX

Industry Overview: The Zacks Computer Software industry encompasses companies that develop software applications for various sectors, including AI, cloud computing, cybersecurity, and digital media, with a focus on simulation software for engineering and design.

Trends Influencing Growth: Key trends shaping the software industry include increased spending on AI and cloud solutions, a heightened focus on cybersecurity due to rising cyber threats, and macroeconomic challenges that may impact overall performance.

Market Performance: The Zacks Computer Software industry has underperformed compared to the broader technology sector and the S&P 500 over the past year, with a modest gain of 3.3% against higher increases in both benchmarks.

Stock Recommendations: Notable companies in the industry include Simulations Plus, Synopsys, and Descartes, each showing varying growth prospects and challenges, with recommendations based on their current performance and future potential in the market.

Durable Capital's Exit: Durable Capital Partners LP sold its entire stake of 2,253,704 shares in The Descartes Systems Group, amounting to an estimated $229.08 million, reducing its exposure to 0% of its assets under management (AUM).

Performance Overview: As of December 4, 2025, Descartes shares were priced at $94.87, reflecting a 23% decline over the past year and underperforming the S&P 500 by 36 percentage points.

Company Profile: The Descartes Systems Group specializes in cloud-based logistics technology, providing solutions for supply chain optimization and automation, and has shown consistent sales growth of 14% annually over various time frames.

Investment Perspective: Despite Durable Capital's decision to sell, some analysts believe Descartes may still represent a buy-the-dip opportunity due to its strong market position and historical performance, although its high valuation could be a concern.