Epam (EPAM) Stock Sinks As Market Gains: What You Should Know
Epam (EPAM) closed the most recent trading day at $474.95, moving -1.94% from the previous trading session. This change lagged the S&P 500's 0.94% gain on the day. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, lost 0.55%.
Prior to today's trading, shares of the information technology services provider had lost 21.72% over the past month. This has lagged the Computer and Technology sector's loss of 7.56% and the S&P 500's loss of 4.63% in that time.
Epam will be looking to display strength as it nears its next earnings release, which is expected to be February 17, 2022. On that day, Epam is projected to report earnings of $2.50 per share, which would represent year-over-year growth of 38.12%. Our most recent consensus estimate is calling for quarterly revenue of $1.08 billion, up 49.88% from the year-ago period.
Any recent changes to analyst estimates for Epam should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Epam is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Epam is holding a Forward P/E ratio of 43.34. For comparison, its industry has an average Forward P/E of 27.05, which means Epam is trading at a premium to the group.
Also, we should mention that EPAM has a PEG ratio of 1.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computers - IT Services was holding an average PEG ratio of 1.49 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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