Epam (EPAM) closed the most recent trading day at $433.41, moving -0.49% from the previous trading session. This move was narrower than the S&P 500’s daily loss of 0.54%. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the information technology services provider had lost 35.74% over the past month, lagging the Computer and Technology sector’s loss of 13.86% and the S&P 500’s loss of 7.87% in that time.
Wall Street will be looking for positivity from Epam as it approaches its next earnings report date. This is expected to be February 17, 2022. In that report, analysts expect Epam to post earnings of $2.50 per share. This would mark year-over-year growth of 38.12%. Our most recent consensus estimate is calling for quarterly revenue of $1.08 billion, up 49.88% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Epam. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Epam currently has a Zacks Rank of #3 (Hold).
Investors should also note Epam’s current valuation metrics, including its Forward P/E ratio of 38.97. This valuation marks a premium compared to its industry’s average Forward P/E of 24.5.
Also, we should mention that EPAM has a PEG ratio of 1.39. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Computers – IT Services industry currently had an average PEG ratio of 1.39 as of yesterday’s close.
The Computers – IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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