Epam (EPAM) Gains But Lags Market: What You Should Know

Epam (EPAM) closed the most recent trading day at $402.79, moving +0.18% from the previous trading session. This change lagged the S&P 500's 0.69% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 0.2%.

Prior to today's trading, shares of the information technology services provider had lost 9.15% over the past month. This has was narrower than the Computer and Technology sector's loss of 14.62% and the S&P 500's loss of 9.94% in that time.

Wall Street will be looking for positivity from Epam as it approaches its next earnings report date. In that report, analysts expect Epam to post earnings of $2.52 per share. This would mark year-over-year growth of 4.13%. Meanwhile, our latest consensus estimate is calling for revenue of $1.22 billion, up 23.76% from the prior-year quarter.

EPAM's full-year Zacks Consensus Estimates are calling for earnings of $9.96 per share and revenue of $4.88 billion. These results would represent year-over-year changes of +10.06% and +29.74%, respectively.

Investors might also notice recent changes to analyst estimates for Epam. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.38% higher. Epam is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, Epam currently has a Forward P/E ratio of 40.36. This represents a premium compared to its industry's average Forward P/E of 22.18.

Also, we should mention that EPAM has a PEG ratio of 2.04. 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 1.34 at yesterday's closing price.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.