IInvestors interested in IT and technology stocks should always look for the best performing companies in the group. Is Aspen Technology (AZPN) one of those stocks right now? Looking at the stock’s year-to-date performance against its IT and tech peers, we might be able to answer that question.
Aspen Technology is a member of our IT and Technology group, which includes 665 different companies and is currently ranked 10th in the Zacks industry rankings. The Zacks Industry Ranking considers 16 different industry groups. The average Zacks ranking of individual stocks within groups is measured and sectors are listed from best to worst.
The Zacks ranking emphasizes earnings estimates and estimate revisions to find stocks with improved earnings prospects. This system has a long track record of success, and these stocks tend to be on track to beat the market over the next one to three months. Aspen Technology currently sports a Zacks ranking of #2 (buy).
Over the past 90 days, the Zacks Consensus Estimate for AZPN’s annual earnings rose 17.1%. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
According to our latest data, AZPN is up around 18.9% since the start of the year. Meanwhile, the IT & Technology sector has posted an average return of -28.9% year-to-date. This shows that Aspen Technology is outperforming its peers so far this year.
DZS Inc. (DZSI) is another IT and technology stock that has outperformed the sector so far this year. Since the start of the year, the stock has returned 6.8%.
In the case of DZS Inc., the current-year consensus EPS estimate rose 21.8% over the past three months. The stock currently has a Zacks rank #2 (buy).
To break it down further, Aspen Technology belongs to the Internet – Software industry, a group that comprises 148 individual companies and currently sits at #143 in Zacks Industry Rank. On average, stocks in this group have lost 52.6% this year, meaning that AZPN is doing better in terms of returns year-to-date.
On the other hand, DZS Inc. belongs to the Communication – Infrastructure industry. This 8-title industry is currently ranked #50. The industry has evolved by -44.6% since the beginning of the year.
Investors interested in IT and technology stocks should continue to watch Aspen Technology and DZS Inc. These stocks will look to continue their strong performance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.