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Based in Newtown, Pennsylvania, EPAM Systems, Inc. (EPAM) provides digital platform engineering and software development services. With a market cap of $11.5 billion, the company serves the financial services, travel and consumer, software and hi-tech, business information media, and healthcare industries.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and EPAM Systems fit this criterion perfectly. The company operates in over 55 countries and regions and serves more than 295 Forbes Global 2000 corporations.
Despite a 37.4% decline from its 52-week high of $317.50 reached on Mar. 8, shares of this software engineering company have gained 8.4% over the past three months, surpassing the broader S&P 500 Index’s ($SPX) 4.7% return over the same time frame.
However, in the longer term, EPAM stock is down 33.3% on a YTD basis, significantly lagging behind SPX’s 19.6% gains. Moreover, shares of EPAM have declined nearly 24% over the past 52 weeks, underperforming SPX’s 32.1% returns over the same time frame.
EPAM has been trading below its 200-day moving average since mid-April and has remained below its 50-day moving average since mid-September, representing a bearish trend.
Despite reporting stronger-than-expected Q2 adjusted EPS of $2.45 and revenue of $1.2 billion, shares of EPAM tumbled 8.2% on Aug. 8, primarily due to the company’s lowered fiscal 2024 revenue guidance and a year-over-year decline in revenues and earnings. This decline was attributed to reduced sales across most of its end markets and the adverse effects of a slowdown in IT spending.
EPAM has lagged behind its rival, Globant S.A. (GLOB), which has experienced a decline of 3.5% over the past 52 weeks and a drop of 19.1% on a YTD basis.Despite EPAM’s underperformance over the past year, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 21 analysts covering the stock, and the mean price target of $227.05 suggests a premium of 14.3% to its current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
