Software is one of the hottest categories for stocks. And small but fast-growing software maker Aspen Technology's (AZPN) stock recently hit a fresh all-time high. On Wednesday, the Relative Strength (RS) Rating for Aspen stock headed into a new percentile, climbing to 73, up from 68 the day before.
XThe new 73 RS Rating means that Aspen stock is outperforming 73% of all stocks regardless of industry group. Typically market winners have an RS Rating of over 80 in the early stages of their moves. See if Aspen Technology can continue to show renewed price strength and hit that benchmark.
Aspen Stock Doubled From Covid Crash Low
The Bedford, Mass.-based company specializes in engineering, plant operations and supply chain management software. That last category is in high demand as global economies try to unclog supply chains that backed up as a result of the Covid pandemic.
Aspen stock has roughly doubled in price from the coronavirus crash low at the end of March 2020, rising from 73.07 to 144.40 Wednesday afternoon, down 0.4%. The software maker touched an all-time high at 169.22 on Oct. 14 before consolidating amid recent market turmoil.
Among other significant ratings, Aspen Technology has an EPS Rating of 80, out of 99, putting it in the top 20% of companies for recent and long-term profit growth. Aspen stock also has a B- Accumulation/Distribution Rating, indicating institutional investors are buying its stock.
And the company's stock carries a strong 90 Composite Rating. The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score. The best growth stocks have a Composite Rating of 90 or better.
In terms of fundamentals, top and bottom line growth moved higher in the company's most recent quarter. Aspen's earnings last quarter climbed 33% year over year to 77 cents per share. Revenue grew 18% to $136 million.
Looking For The Best Stocks To Buy And Watch? Start Here
Now is not an ideal time to jump in since it isn't near a proper buy zone. See if Aspen stock goes on to offer a fresh buying opportunity, such as a three-weeks-tight pattern, or a bounce off its 50-day or 200-day line.
Aspen stock earns the No. 15 rank among its peers in the Computer Software-Enterprise industry group. Datadog (DDOG) and Concentrix (CNXC) are among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This exclusive rating from Investor's Business Daily tracks share price movement with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the trailing 52 weeks holds up against all the other stocks in our database.
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