Aspen Technology’s AZPN comprehensive suite of Digital Grid Management (DGM) solutions is used by Latin America-based multi-country energy transmission company — Interconexión Eléctrica S.A. E.S.P. (ISA) — to attain a 99.99% power reliability rate. This ensures uninterrupted electricity for millions of people across nearly 16,395 miles of circuits in Colombia, Peru and Bolivia. 

Aspen’s cutting-edge DGM solution empowers ISA with the tools to monitor, manage and optimize its real-time power grid while addressing evolving energy demands.  ISA employs the AspenTech OSI monarch SCADA platform to visualize, monitor and control its energy grid, allowing operators to oversee the transmission grid precisely. To effectively maintain a stable power transmission in real-time, ISA relies on the AspenTech OSI Energy Management System. 

A key aspect of maintaining high power reliability is equipping operators to handle emergencies effectively. AspenTech’s operator training simulator provides ISA’s operators with real-world situations to practice managing system events and emergencies. This hands-on training equips operators with the skills to respond swiftly to potential disruptions and safeguard the network's reliability.

AZPN’s solutions not only enhance operational efficiency but also address the pressing need for cybersecurity. Through regular software upgrades and product enhancements, the company ensures ISA’s systems remain secure, resilient and equipped to handle emerging risks. As the energy sector continues to evolve, this collaboration highlights the importance of adopting innovative technologies to address growing energy challenges.

Strong Demand for AZPN's DGM Solution Boosts Revenues

Aspen’s revenue growth remains robust, fueled by increasing demand for its solutions, particularly the DGM suite. DGM is witnessing strength, accompanied by a growing global pipeline. During the fiscal first quarter, a major U.S. utility adopted the company’s new Distributed Energy Resources Management capabilities to help achieve its clean energy goals and support net-zero initiatives. Aspen also announced an agreement to acquire Open Grid Systems, which will enhance its DGM suite with advanced network model management and data infrastructure. The acquisition is expected to be completed before the end of 2024.

In August 2024, AZPN collaborated with Omaha Public Power District to help the utility achieve its goal of net zero carbon production by 2050. It will supply its DGM software suite to OPPD, enabling reliable monitoring, scheduling and control of distributed energy resources on the grid. In November 2024, Iceland’s power-producing utility, Landsvirkjun deployed AspenTech OSI DGM software to enhance real-time control and optimization of its power generation across the country.

Aspen’s expertise in DGM underscores the critical role of technology in modern energy systems. The DGM segment is poised to gain from increased electricity demand fueled by data center growth, artificial intelligence (AI) expansion and extensive grid modernization. In addition, management expects to gain as customers seek sustainable solutions in critical minerals mining and low-carbon fuel options.

Robust adoption of DGM software is likely to buoy Aspen’s revenue performance in the upcoming quarters. A solid sales pipeline and a healthy financial statement are expected to impress investors and propel the stock.

AZPN’s Zacks Rank & Stock Price Performance

Aspen currently carries a Zacks Rank #2 (Buy). In the past year, shares have gained 26.7% compared with the industry’s growth of 47.5%.

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Other Stocks to Consider

Some other top-ranked stocks from the broader technology space are InterDigital, Inc. IDCC, Celestica Inc. CLS and Plexus Corp., Inc. PLXS. IDCC & PLXS presently sport a Zacks Rank #1 (Strong Buy), while CLS carries a Zacks Rank#2. You can see the complete list of today’s Zacks #1 Rank stocks here.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 17.44%.

Plexus is a leading provider of electronic contract manufacturing services to OEMs in a wide range of industries, including Healthcare/Life Sciences, Industrial and Aerospace/Defense market sectors. In the last reported quarter, PLXS delivered an earnings surprise of 20.92%.

CLS provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers. In the last reported quarter, it delivered an earnings surprise of 10.64%. 

 

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