EPAM Systems, Inc. (EPAM), based in Newtown, Pennsylvania, stands out as a leader in digital transformation, product engineering, and software development for businesses across different sectors. Currently boasting a market cap of $13.5 billion, EPAM is committed to delivering innovative technology solutions globally.
Understanding EPAM’s Market Position
Classified as a “large-cap stock” due to its market value exceeding $10 billion, EPAM continually seeks to grow through a focus on technology innovation and excellent client service. The firm excels at turning intricate challenges into valuable opportunities, helping companies adapt and succeed in a rapidly digitalizing world.
Recent Stock Performance Highlights
After reaching a 52-week high of $317.50 on March 8, EPAM’s shares have declined by 24.9%. Over the last three months, however, the stock has shown resilience, climbing 19.6% compared to the broader Nasdaq Composite’s ($NASX) 8.8% gain in the same period.
Looking back over the half-year mark, EPAM’s stock surged by 28.8%, although it has shown a decline of 20.6% over the past year. In comparison, the NASX has increased by 10.4% in the last six months and 30.6% over the past year.
Indications of a Bullish Trend
Since early November, EPAM has consistently traded above its 50-day and 200-day moving averages, suggesting a bullish market trend.
Recent Developments and Future Outlook
On December 17, shares of EPAM gained more than 1% after Barclays upgraded its rating from equal weight to overweight, with a new price target of $290. Earlier, on November 7, EPAM experienced a significant 14.9% surge following its strong third-quarter earnings report. The company achieved revenue of $1.17 billion, marking a year-over-year increase of 1.3% and exceeding the consensus estimate of $1.15 billion. Furthermore, adjusted EPS was reported at $3.12, reflecting a 14.3% rise year-over-year and surpassing analysts’ expectations of $2.70.
Looking ahead to the fourth quarter, EPAM forecasts revenue in the range of $1.205 billion to $1.215 billion, translating to a projected year-over-year growth of 4.6% at the midpoint. Non-GAAP EPS is expected to fall between $2.70 and $2.78 for the quarter, indicating strong continued performance.
Competitive Landscape
Comparatively, Globant S.A. (GLOB), a competitor of EPAM, has experienced a lesser decline of only 8.2% over the past year. Despite EPAM’s recent robust performance, analysts remain cautiously optimistic. Currently, among the 19 analysts monitoring the stock, there is a consensus rating of “Moderate Buy,” with a mean price target of $260.11, suggesting a potential upside of 9.1% from its present level.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
