Pegasystems: Valuation Check Amid 20% YTD Gain and Recent Pullback

Pegasystems (PEGA) has a 20% YTD gain despite a recent 11% pullback. The stock is trading at a discount to analyst targets and has a strong three-year total shareholder return above 200%. The recent pullback is seen as a breather within a positive trend, with shares still trading at a meaningful discount to analyst targets. The key question is whether Pegasystems is mispriced value or if the market has already priced in its next leg of growth.