Epam Systems Stock Near Buy Point As Earnings Report Nears; Trading Just Below All-Time High

Epam Systems (EPAM) is forming a base offering a 648.82 entry as it gets ready to report its next round of earnings on Nov. 4. The entry is based on a third-stage cup without handle, which involves more risk than a first- or second-stage formation. Epam Systems stock rose Thursday.


Newtown, Pa.-based Epam Systems earns the No. 1 rank among its peers in the Computer-Technical Services industry group. Endava (DAVA) and Globant (GLOB) are also among the group’s highest-rated stocks.

Epam Systems Stock Has Perfect Composite Rating

Among key ratings for Epam Systems stock, it boasts a perfect 99 IBD Composite Rating of a possible 99. Its 93 EPS Rating puts it in the top 7% of stock for recent and long-term profit growth. And it in the Computer-Tech Services group, which ranks a lofty No. 12 on IBD’s list of 197 industry groups. Epam provides outsourced software services such as design, prototyping and testing.

One yellow flag to watch: Its Accumulation/Distribution Rating is a D+ on an A+ to E scale, which means institutional investors are selling more shares than buying.

However, Epam Systems stock continues to burn rubber. It’s up 323% from a late March 2020 low of 151.97, and an amazing 1,079% higher than a November 2016 low of 54.53. Shares closed at 642.98 Thursday, up 3.9% for the day. It hit an all-time intraday high 648.72 on Sept. 7.

In terms of top and bottom line numbers, Epam Systems has posted four quarters of rising earnings growth. Revenue gains have also increased over the same time frame. Last quarter, EPS rose 40% to $2.05 on a 39% rise in revenue to $881.4 million.

Growth Estimates Revised Upward

Consensus analyst estimates call for earnings-per-share growth of 34% for the quarter, and 33% growth for the full year. Annual growth estimates were recently revised upward.

See How IBD Helps You Make More Money In Stocks

Buying close to when a stock reports can be risky. You don’t know how the stock will report and how the market will react, and you don’t have enough time to build a profit cushion. However, you can reduce your exposure by waiting to see how the company reports and how the market reacts. You can also use an options strategy to limit your potential downside.

Note: Dates for earnings reports are subject to change. Check the company’s website for any updates.


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