Aspen Technology (AZPN - Free Report) closed the most recent trading day at $86.16, moving +1.5% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.65%. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 1.01%.
Heading into today, shares of the software maker had lost 22.93% over the past month, lagging the Computer and Technology sector's loss of 9.21% and the S&P 500's loss of 6.82% in that time.
Investors will be hoping for strength from AZPN as it approaches its next earnings release, which is expected to be January 23, 2019. In that report, analysts expect AZPN to post earnings of $0.64 per share. This would mark year-over-year growth of 8.47%. Our most recent consensus estimate is calling for quarterly revenue of $123.46 million, down 1.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.23 per share and revenue of $548.59 million. These totals would mark changes of +39.83% and +9.83%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AZPN. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.85% higher. AZPN currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, AZPN is holding a Forward P/E ratio of 26.25. This valuation marks a discount compared to its industry's average Forward P/E of 29.92.
We can also see that AZPN currently has a PEG ratio of 1.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.07 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.