EPAM Systems Inc. Stock Rises Friday, Still Lags Market
Generated by AI AgentWesley Park
Saturday, Jan 4, 2025 4:41 pm ET1min read
EPAM--
EPAM Systems Inc. (EPAM) stock rose on Friday, but it continues to underperform the broader market. The IT services provider's shares gained 1.2% to close at $230.72, following a mixed earnings report. Despite the recent uptick, EPAM's stock has fallen by around 21% year-to-date, compared to the S&P 500's decline of approximately 10%.
EPAM Systems reported third-quarter earnings on Thursday, with revenue of $1.17 billion, up 1.3% year-over-year. However, earnings per share (EPS) of $2.37 missed analysts' estimates of $2.40. The company also raised its full-year revenue and EPS guidance, which initially boosted investor sentiment. Nevertheless, the stock's performance has been lackluster compared to the market average.
Analysts have mixed opinions on EPAM Systems' stock. According to TipRanks, the average rating for EPAM stock is "Buy," with a 12-month price target of $271.75, indicating a potential upside of around 17.8%. However, the number of analysts covering the stock has decreased from 21 to 18 in the past year, suggesting a waning interest in the company.
EPAM Systems' underperformance can be attributed to several factors, including slowing growth in key markets, increased competition, and geographic concentration. The company's largest market is North America, which represents approximately 60% of its revenue, exposing it to regional economic fluctuations and geopolitical risks. Additionally, the IT services sector has faced headwinds in recent years, such as slower growth in IT spending and increased competition.
In conclusion, EPAM Systems Inc. stock rose on Friday, but it continues to lag behind the broader market. The company's mixed earnings report and analyst opinions, combined with its underperformance compared to the market average, suggest that investors should exercise caution when considering EPAM Systems as an investment opportunity.
EPAM Systems Inc. (EPAM) stock rose on Friday, but it continues to underperform the broader market. The IT services provider's shares gained 1.2% to close at $230.72, following a mixed earnings report. Despite the recent uptick, EPAM's stock has fallen by around 21% year-to-date, compared to the S&P 500's decline of approximately 10%.
EPAM Systems reported third-quarter earnings on Thursday, with revenue of $1.17 billion, up 1.3% year-over-year. However, earnings per share (EPS) of $2.37 missed analysts' estimates of $2.40. The company also raised its full-year revenue and EPS guidance, which initially boosted investor sentiment. Nevertheless, the stock's performance has been lackluster compared to the market average.
Analysts have mixed opinions on EPAM Systems' stock. According to TipRanks, the average rating for EPAM stock is "Buy," with a 12-month price target of $271.75, indicating a potential upside of around 17.8%. However, the number of analysts covering the stock has decreased from 21 to 18 in the past year, suggesting a waning interest in the company.
EPAM Systems' underperformance can be attributed to several factors, including slowing growth in key markets, increased competition, and geographic concentration. The company's largest market is North America, which represents approximately 60% of its revenue, exposing it to regional economic fluctuations and geopolitical risks. Additionally, the IT services sector has faced headwinds in recent years, such as slower growth in IT spending and increased competition.
In conclusion, EPAM Systems Inc. stock rose on Friday, but it continues to lag behind the broader market. The company's mixed earnings report and analyst opinions, combined with its underperformance compared to the market average, suggest that investors should exercise caution when considering EPAM Systems as an investment opportunity.
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