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Here's How Much a $1000 Investment in Epam Made 10 Years Ago Would Be Worth Today

For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in Epam (EPAM) ten years ago? It may not have been easy to hold on to EPAM for all that time, but if you did, how much would your investment be worth today?

Epam's Business In-Depth

With that in mind, let's take a look at Epam's main business drivers.

Headquartered at Newtown, PA, EPAM Systems, Inc. is well known for its software engineering and IT consulting services.

The company is engaged in providing software product development services, custom application development services, application testing services, application maintenance and support services, infrastructure management services and enterprise information management services.

Its software product development services include product research, design and prototyping, product development, component design and integration. EPAM’s custom application development services comprise business and technical requirements analysis, solution architecture creation and validation, development, component design and integration.

Under the application testing services, the company offers software application testing, testing for enterprise IT, and consulting services. Further, it provides services like incident management, fault investigation diagnosis, work-around provision, application bug fixes, release management, application enhancements, and third-party maintenance under the application maintenance and support services.

EPAM’s infrastructure management services include applications, database, network, server, storage, and systems operations management, as well as incident notification and resolutions. Through its enterprise information management services, the company helps organizations in improving business processes, thereby achieving greater operational excellence.

EPAM generated total revenues of $3.76 billion in 2021. The company has six operating verticals — Financial Services (22.6% of FY21 revenues), Travel and Consumer (19.7%), Software & Hi-Tech (17.7%), Business Information & Media (17.7%), Life Sciences & Healthcare (10.4%) and Emerging Verticals (11.9%).

The company has a huge client base, which includes majority of Forbes Global 2000 corporations operating across North America, Europe, CIS (Commonwealth of Independent States) and APAC (Asia including India and Australia). In 2020, the company generated 60% of its revenues from North America, 33.1% from Europe, 4.3% from CIS and 2.6% from APAC.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Epam ten years ago, you're likely feeling pretty good about your investment today.

A $1000 investment made in December 2012 would be worth $17,918.33, or a 1,691.83% gain, as of December 1, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 188.11% and gold's return of -0.75% over the same time frame.

Going forward, analysts are expecting more upside for EPAM.

EPAM is benefiting from ongoing digital transformation and continued focus on customer engagement and product development. The company is benefiting from growth across all geographies and multiple industry verticals. Digital transformation, focus on customer engagement and product developments have been key catalysts. Acquisitions and partnerships are also aiding top-line growth. The latest forecast for worldwide IT spending by Gartner is a positive for EPAM. Our estimates suggests that EPAM’s revenues will grow at a CAGR of 21.9% through 2022-2024. However, competition from companies like Accenture and Infosys is a constant pressure. The ongoing conflict is likely to continue disrupting the company’s overall business operations in the near-term as a significant number of its delivery centers are located in Central and Eastern Europe.

Over the past four weeks, shares have rallied 12.74%, and there have been 11 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.

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