Epam (EPAM) Outpaces Stock Market Gains: What You Should Know

This story originally appeared on Zacks

Epam (EPAM) closed the last trading day at $543.06, up +0.45% from the previous trading session. That change outpaced the S&P 500’s gain of 0.08% on the day. Elsewhere, the Dow Jones lost 0.56%, while the big tech Nasdaq lost 0.42%.

– Zacks

As of today, the IT services provider’s shares have lost 14.96% in the past month. At the same time, the computer and technology sector lost 5.11%, while the S&P 500 rose 0.22%.

Wall Street will be looking for positivity from Epam as it approaches the next earnings report date. The company is expected to report earnings per share of $2.50, up 38.12% from the previous quarter. Meanwhile, Zacks revenue estimates forecast net sales of $1.08 billion, up 49.88% from the same period last year.

Any recent changes to analyst estimates for Epam should also be noted by investors. These reviews usually reflect the latest short-term business trends, which can change frequently. As such, positive rating reviews reflect the analyst’s optimism about the company’s business and profitability.

Research indicates that these discretionary revisions are directly related to the stock’s near-term price momentum. To take advantage of this, we have developed Zacks Rank, a proprietary model that takes these discretionary changes into account and provides an actionable ranking system.

The Zacks Rank system ranges from #1 (strong buy) to #5 (strong sell). The company has a successful track record, subject to external scrutiny, with the No. 1 stock having generated an average annual return of over 25% since 1988. Zacks Consensus EPS estimate has remained flat over the past month. Epam currently has a Zacks rating of 3 (Hold).

Given its valuation, Epam maintains a forward P/E ratio of 48.37. This is a premium over the industry’s average forward P/E of 30.26.

It is also worth noting that EPAM currently has a PEG ratio of 1.73. This common metric is similar to the widely known price-earnings (P/E) ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Industry EPAM’s average PEG ratio was 1.46 as of yesterday’s close.

Computer hardware industry – IT services is part of the computer and technology sector. This group has a Zacks Industry Rating of 106, placing it in the top 42% of over 250 industries.

Zacks Industry Ranks are listed in order from best to worst in terms of the average Zacks rating of individual companies in each of these sectors. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to keep track of all these stock movement metrics and more in upcoming trading sessions.

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