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Epam (EPAM) Gains As Market Dips: What You Should Know

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Epam (EPAM - Free Report) closed at $332.54 in the latest trading session, marking a +0.27% move from the prior day. This move outpaced the S&P 500's daily loss of 0.8%. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq lost 0.03%.

Prior to today's trading, shares of the information technology services provider had lost 13.92% over the past month. This has lagged the Computer and Technology sector's loss of 6.95% and the S&P 500's loss of 5.13% in that time.

Epam will be looking to display strength as it nears its next earnings release, which is expected to be November 3, 2022. The company is expected to report EPS of $2.52, up 4.13% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.22 billion, up 23.61% from the prior-year quarter.

EPAM's full-year Zacks Consensus Estimates are calling for earnings of $9.97 per share and revenue of $4.87 billion. These results would represent year-over-year changes of +10.17% and +29.62%, respectively.

It is also important to note the recent changes to analyst estimates for Epam. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. Epam is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Epam's current valuation metrics, including its Forward P/E ratio of 33.28. This valuation marks a premium compared to its industry's average Forward P/E of 20.81.

It is also worth noting that EPAM currently has a PEG ratio of 1.68. 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. EPAM's industry had an average PEG ratio of 1.12 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 87, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow EPAM in the coming trading sessions, be sure to utilize Zacks.com.


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