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EPAM Systems, Inc. (EPAM), headquartered in Newtown, Pennsylvania, is a global leader in digital transformation, product engineering, and software development. With a market cap of $13.5 billion, EPAM delivers cutting-edge technology solutions to enterprises across industries worldwide.
Companies with a market cap of $10 billion or more are classified as “large-cap stocks,” and EPAM Systems exemplifies this category. The company continues to enhance its value proposition through its dedication to technological innovation, client-centric solutions, and operational excellence. EPAM transforms complex challenges into opportunities, enabling clients to adapt, innovate, and achieve their strategic objectives in an increasingly digital world.
Shares of this software engineering company have fallen 24.9% from their 52-week high of $317.50, hit on Mar. 8. The stock is up 19.6% over the past three months, outperforming the broader Nasdaq Composite’s ($NASX) 8.8% gain during the same time frame.
Over the past six months, EPAM rallied 28.8%, though it has declined 20.6% over the past 52 weeks. In contrast, the NASX has risen by 10.4% in the past six months and 30.6% over the past year.
EPAM Systems has consistently traded above its 50-day and 200-day moving averages since early November, indicating a bullish trend.
On Dec. 17, EPAM gained over 1% following an upgrade from Barclays, which raised the stock's rating to overweight from equal weight and set a price target of $290.
EPAM stock surged 14.9% on Nov. 7 following the release of strong Q3 earnings results. The company reported revenue of $1.17 billion, reflecting a year-over-year increase of 1.3% and surpassing the consensus estimate of $1.15 billion. Adjusted EPS came in at $3.12, up 14.3% year-over-year and exceeding analysts' expectations of $2.70.
Looking ahead, EPAM projects Q4 revenue to be between $1.205 billion and $1.215 billion, indicating 4.6% year-over-year growth at the midpoint. The company also anticipates non-GAAP EPS between $2.70 and $2.78 for the quarter, signaling continued robust performance.
Highlighting the contrast in performance, EPAM’s competitor, Globant S.A. (GLOB), has fared better, experiencing a smaller decline of 8.2% over the past year.
Despite the stock's recent strong performance, analysts maintain a cautiously optimistic view of EPAM's prospects. Of the 19 analysts tracking the stock, it has a consensus rating of "Moderate Buy." The mean price target is $260.11, indicating a potential upside of 9.1% from its current level.
