Why Aspen Technology (AZPN) Stock Is Spiking Today

NEW YORK (TheStreet) -- Aspen Technology (AZPN) stock is spiking on Wednesday after the company beat revenue and earnings expectations in its March-ending quarter.

By late afternoon, shares had tumbled 13.5% to $42.83.

In its third quarter, the software developer earned an adjusted 28 cents a share, 9 cents higher than analysts surveyed by Thomson Reuters had forecast. Revenue soared 30.5% year over year to $103.59 million, exceeding expectations of $92.82 million.

Must Read: Warren Buffett's 10 Favorite Growth Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team rates ASPEN TECHNOLOGY INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate ASPEN TECHNOLOGY INC (AZPN) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

If you liked this article you might like

Aspen Technology (AZPN) Stock Dropped Today, Downgraded at Benchmark

Analysts' Actions -- American Express, CME, Dr. Pepper Snapple, PulteGroup and More

11 High-Growth Tech Stocks to Avoid in 2016

Trade-Ideas: Aspen Technology (AZPN) Is Today's "Dead Cat Bounce" Stock

AZPN, ATVI And CTSH, Pushing Computer Software & Services Industry Downward