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Here's Why Aspen (AZPN) is an Attractive Stock Right Now
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Aspen Technology, Inc (AZPN - Free Report) is one stock investors may consider adding to their portfolio to combat the highly-volatile market environment and make some gains from its upside potential. The company currently sports a Zacks Rank #1 (Strong Buy).
The U.S. equity markets have been witnessing extreme volatility since the beginning of 2022. Major indexes like the Dow Jones Industrial Average and S&P 500 have plunged 16.4% and 21.6%, respectively, year to date.
Factors affecting the markets include the pandemic and widespread supply chain disruptions, inflation, increasing crude oil prices and a stricter fed policy. Also, the ongoing Russia-Ukraine war has made investors apprehensive about the global economic recovery.
In the current market scenario, investors can wager on stocks with strong fundamentals that can stay afloat and grow once the impact of the global macroeconomic uncertainties subsides.
Why AZPN is an Attractive Pick
Shares of Aspen have rallied 32.4% in the past year against the Zacks Computer-Software industry’s decline of 64.3%. The stock is down 12.5% from its 52-week high level of $210.60 reached on Jun 7, 2022, making it more affordable for investors.
Aspen has an impressive earnings surprise history. The company outpaced estimates in three out of the trailing four quarters, delivering an earnings surprise of 4.1%, on average. The stock has an impressive long-term earnings per share (EPS) growth expectation of 18.4%.
The Zacks Consensus Estimate of $5.53 per share for fiscal 2022 earnings suggests growth of approximately 4.1% from the year-ago period. For fiscal 2023, the consensus mark for earnings is pegged at $6.43, indicating a year-over-year increase of 22.2%.
In the last reported quarter, the company posted revenues of $187.8 million, which increased 15.4% on a year-over-year basis. The top line benefited from broad-based demand for its products and strong bookings growth. Total bookings (reported under topic 606) were $207 million, up 18% year over year.
Strong Fundamental Drivers
Bedford, MA-based Aspen Technology, Inc. provides asset optimization software solutions. The company facilitates asset management processes for various industries, consequently enabling the clientele to improve the efficiency of assets.
Aspen Technology’s performance is gaining from improving customer demand. The company’s diversified product portfolio, especially its asset optimization and management software solutions and Asset Performance Management (APM) suite, is witnessing healthy momentum. The rapid adoption of cloud-based solutions, the proliferation of big data analytics and Internet of Things (IoT) technologies and higher spending on software will likely drive its top line. Strategic acquisitions are likely to boost the top line going forward.
The integration of Emerson’s OSI Inc. and Geological Simulation Software (“GSS”) businesses bodes well for Aspen. OSI specializes in optimizing transmission and distribution networks for utility companies in the power industry. The integration of Emerson’s OSI business will aid Aspen in developing its transmission and distribution offering to support power grid modernization and ensure grid reliability. Aspen could also cross-sell its current products to industrial customers due to increased exposure to the utilities and power market. Emerson’s GSS business, which will be known as Subsurface Science and Engineering (“SSE”), provides a comprehensive solution for oil and gas supply-chain links. By moving OSI and the GSS business to a subscription-based business model, Aspen is expected to derive considerable revenue and synergy opportunities.
The Zacks Consensus Estimate for Vishay Intertechnology’s 2022 earnings is pegged at $2.68 per share, rising 10.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 22.7%.
Vishay Intertechnology’s earnings beat the Zacks Consensus Estimate in three out of the last four quarters, the average being 4.96%. Shares of VSH have declined 18.8% in the past year.
The Zacks Consensus Estimate for InterDigital 2022 earnings is pegged at $3.28 per share, up 5.1% in the past 60 days. IDCC’s long-term earnings growth rate is pegged at 15%. InterDigital’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 141.1%. Shares of IDCC have lost 22.5% of their value in the past year.
The Zacks Consensus Estimate for Avnet’s fiscal 2022 earnings is pegged at $6.83 per share, rising 20.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 37.2%.
Avnet’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 21.22%. Shares of Avnet have grown 5.5% in the past year.
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Here's Why Aspen (AZPN) is an Attractive Stock Right Now
Aspen Technology, Inc (AZPN - Free Report) is one stock investors may consider adding to their portfolio to combat the highly-volatile market environment and make some gains from its upside potential. The company currently sports a Zacks Rank #1 (Strong Buy).
The U.S. equity markets have been witnessing extreme volatility since the beginning of 2022. Major indexes like the Dow Jones Industrial Average and S&P 500 have plunged 16.4% and 21.6%, respectively, year to date.
Factors affecting the markets include the pandemic and widespread supply chain disruptions, inflation, increasing crude oil prices and a stricter fed policy. Also, the ongoing Russia-Ukraine war has made investors apprehensive about the global economic recovery.
In the current market scenario, investors can wager on stocks with strong fundamentals that can stay afloat and grow once the impact of the global macroeconomic uncertainties subsides.
Why AZPN is an Attractive Pick
Shares of Aspen have rallied 32.4% in the past year against the Zacks Computer-Software industry’s decline of 64.3%. The stock is down 12.5% from its 52-week high level of $210.60 reached on Jun 7, 2022, making it more affordable for investors.
Aspen Technology, Inc. Price
Aspen Technology, Inc. price | Aspen Technology, Inc. Quote
Aspen has an impressive earnings surprise history. The company outpaced estimates in three out of the trailing four quarters, delivering an earnings surprise of 4.1%, on average. The stock has an impressive long-term earnings per share (EPS) growth expectation of 18.4%.
The Zacks Consensus Estimate of $5.53 per share for fiscal 2022 earnings suggests growth of approximately 4.1% from the year-ago period. For fiscal 2023, the consensus mark for earnings is pegged at $6.43, indicating a year-over-year increase of 22.2%.
In the last reported quarter, the company posted revenues of $187.8 million, which increased 15.4% on a year-over-year basis. The top line benefited from broad-based demand for its products and strong bookings growth. Total bookings (reported under topic 606) were $207 million, up 18% year over year.
Strong Fundamental Drivers
Bedford, MA-based Aspen Technology, Inc. provides asset optimization software solutions. The company facilitates asset management processes for various industries, consequently enabling the clientele to improve the efficiency of assets.
Aspen Technology’s performance is gaining from improving customer demand. The company’s diversified product portfolio, especially its asset optimization and management software solutions and Asset Performance Management (APM) suite, is witnessing healthy momentum. The rapid adoption of cloud-based solutions, the proliferation of big data analytics and Internet of Things (IoT) technologies and higher spending on software will likely drive its top line. Strategic acquisitions are likely to boost the top line going forward.
The integration of Emerson’s OSI Inc. and Geological Simulation Software (“GSS”) businesses bodes well for Aspen. OSI specializes in optimizing transmission and distribution networks for utility companies in the power industry. The integration of Emerson’s OSI business will aid Aspen in developing its transmission and distribution offering to support power grid modernization and ensure grid reliability. Aspen could also cross-sell its current products to industrial customers due to increased exposure to the utilities and power market. Emerson’s GSS business, which will be known as Subsurface Science and Engineering (“SSE”), provides a comprehensive solution for oil and gas supply-chain links. By moving OSI and the GSS business to a subscription-based business model, Aspen is expected to derive considerable revenue and synergy opportunities.
Other Stocks to Consider
A few other top-ranked stocks from the broader technology sector worth consideration are InterDigital (IDCC - Free Report) , Avnet (AVT - Free Report) and Vishay Intertechnology (VSH - Free Report) . While Avnet and InterDIgital sport a Zacks Rank #1, Vishay Intertechnology carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vishay Intertechnology’s 2022 earnings is pegged at $2.68 per share, rising 10.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 22.7%.
Vishay Intertechnology’s earnings beat the Zacks Consensus Estimate in three out of the last four quarters, the average being 4.96%. Shares of VSH have declined 18.8% in the past year.
The Zacks Consensus Estimate for InterDigital 2022 earnings is pegged at $3.28 per share, up 5.1% in the past 60 days. IDCC’s long-term earnings growth rate is pegged at 15%.
InterDigital’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 141.1%. Shares of IDCC have lost 22.5% of their value in the past year.
The Zacks Consensus Estimate for Avnet’s fiscal 2022 earnings is pegged at $6.83 per share, rising 20.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 37.2%.
Avnet’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 21.22%. Shares of Avnet have grown 5.5% in the past year.