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Aspen Technology (AZPN) Soars 5.1%: Is Further Upside Left in the Stock?

Aspen Technology AZPN shares rallied 5.1% in the last trading session to close at $232.67. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.7% gain over the past four weeks.

The increase in share price can be attributed to robust demand for the company’s diversified product portfolio, especially its asset optimization and management software solutions and Asset Performance Management (APM) suite.

The rapid adoption of cloud-based solutions, the proliferation of big data analytics, IoT technologies and higher spending on software is likely to benefit the company. Synergies from the recent integration of Emerson’s OSI Inc. and Geological Simulation Software businesses are further tailwinds.

This software maker is expected to post quarterly earnings of $1.23 per share in its upcoming report, which represents a year-over-year change of +59.7%. Revenues are expected to be $227.97 million, up 67.6% from the year-ago quarter.


While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Aspen Technology, the consensus EPS estimate for the quarter has been revised 0.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AZPN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Aspen Technology is a member of the Zacks Internet - Software industry. One other stock in the same industry, ForgeRock FORG, finished the last trading session 0.2% higher at $14.37. FORG has returned -18.8% over the past month.

ForgeRock's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.15. Compared to the company's year-ago EPS, this represents a change of +57.1%. ForgeRock currently boasts a Zacks Rank of #3 (Hold).

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