Newtown, Pennsylvania-based EPAM Systems, Inc. (EPAM) provides digital platform engineering and software development services. Valued at a market cap of $8.7 billion, the company serves clients across a wide range of industries, including financial services, healthcare, retail, travel, and technology. Companies worth $2 billion or more are typically classified as “mid-cap stocks,” and EPAM fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominan ...

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7][8] Investment Opportunity - Wall Street is investing heavily in AI, but there is a looming energy crisis as AI technologies require vast amounts of electricity, comparable to the energy consumption of small cities [2][3] - The company in focus is positioned to benefit from the surge in demand for electricity driven by AI data centers, making it a potentially lucrative investment opportunity [3][8] Company Profile - The company owns significant nuclear energy infrastructure assets and is capable of executing large-scale engineering, procurement, and construction projects across various energy sectors [7][8] - It is noted for being debt-free and having a substantial cash reserve, which is nearly one-third of its market capitalization, providing financial stability and growth potential [8][10] Market Position - The company is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and benefiting from the onshoring trend driven by tariffs [5][6] - It has an equity stake in another AI-related company, offering investors indirect exposure to multiple growth engines in the AI sector [9][10] Future Outlook - The article emphasizes the importance of investing in AI and energy infrastructure as the future of technology and innovation, with a call to action for investors to seize the opportunity before significant price increases occur [11][12][13] - The potential for substantial returns is highlighted, with projections of over 100% returns within 12 to 24 months for those who invest now [15][19]

Core Insights - The article compares two companies, Epam (EPAM) and CoStar Group (CSGP), to determine which stock is more undervalued for investors in the Computers - IT Services sector [1] Valuation Metrics - EPAM has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to CSGP, which has a Zacks Rank of 4 (Sell) [3] - EPAM's forward P/E ratio is 13.84, significantly lower than CSGP's forward P/E of 100.94, suggesting EPAM is more attractively priced [5] - The PEG ratio for EPAM is 1.75, while CSGP's PEG ratio is 2.37, indicating that EPAM's valuation is more favorable when considering expected earnings growth [5] - EPAM's P/B ratio is 2.36, compared to CSGP's P/B of 4.25, further supporting the argument that EPAM is undervalued [6] Investment Conclusion - Based on the stronger estimate revision activity and more attractive valuation metrics, EPAM is positioned as the superior option for value investors at this time [7]

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage companies [1][2][3] Valuation Metrics - The P/S ratio compares a company's market capitalization to its revenues, providing a clearer picture of value when earnings are minimal or volatile [2][5] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for each dollar of revenue generated [6] - The P/S ratio is preferred over the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [7] Investment Opportunities - Companies like Oshkosh Corporation (OSK), EPAM Systems, Inc. (EPAM), Green Dot (GDOT), The Mosaic Company (MOS), and PagSeguro Digital (PAGS) have low P/S ratios and strong growth drivers, making them attractive for investors [4][10] - Each of these companies combines low P/S ratios with strong fundamentals such as innovation, cost control, or digital expansion [10] Company Profiles - **Oshkosh Corporation (OSK)**: Engaged in designing and manufacturing custom-built vehicles, with a focus on electrification and strategic acquisitions to enhance its market presence. Currently holds a Value Score of B and Zacks Rank 1 [12][13] - **EPAM Systems, Inc. (EPAM)**: Provides software engineering and IT consulting services, benefiting from digital transformation and strategic acquisitions. Holds a Value Score of B and Zacks Rank 2 [14][15] - **Green Dot (GDOT)**: A leader in prepaid cards and Banking-as-a-Service, with a strong balance sheet and significant cash reserves. Holds a Value Score of A and Zacks Rank 1 [16][17] - **The Mosaic Company (MOS)**: A major producer of phosphate and potash, benefiting from strong demand in agriculture and cost transformation efforts. Holds a Value Score of A and Zacks Rank 2 [18][20] - **PagSeguro Digital (PAGS)**: Offers a suite of financial solutions in Brazil, focusing on digital banking and sustainable growth. Holds a Value Score of A and Zacks Rank 2 [21][22]

Core Viewpoint - EPAM (EPAM) has shown a 7.3% gain over the past four weeks, with a mean price target of $214.14 indicating a potential upside of 26.4% from the current price of $169.46 [1] Price Target Analysis - The mean estimate consists of 14 short-term price targets with a standard deviation of $20.95, suggesting variability in analyst predictions. The lowest estimate is $171.00 (0.9% increase), while the highest is $246.00 (45.2% increase) [2] - A low standard deviation among price targets indicates strong agreement among analysts regarding the stock's price movement direction, which can serve as a starting point for further research [7] Earnings Estimates and Analyst Sentiment - There is increasing optimism among analysts about EPAM's earnings prospects, as evidenced by a positive trend in earnings estimate revisions. This trend has shown a strong correlation with near-term stock price movements [9] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 2.8%, with six estimates moving higher and no negative revisions [10] Zacks Rank and Investment Potential - EPAM currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating a strong potential for upside in the near term [11] - While the consensus price target may not be a reliable indicator of the extent of potential gains, it does provide a useful guide for the direction of price movement [12]

Company Performance - EPAM Systems, Inc. reported strong Q2 results on August 7, indicating a growth recovery with significant organic acceleration across various verticals and geographies [1] - Despite an uncertain macroeconomic backdrop, EPAM's investments are contributing positively to its performance [1] Investment Strategy - The investment philosophy focuses on identifying mispriced securities by understanding the drivers behind a company's financials, often revealed through a DCF model valuation [1]

Core Insights - EPAM Systems reported Q2 2025 earnings of $2.77 per share, exceeding the Zacks Consensus Estimate by 6.1%, and up from $2.45 per share a year ago [1][8] - The company's revenues for Q2 2025 reached $1.35 billion, surpassing the consensus mark by 1.37%, reflecting an 18% year-over-year growth [2][8] - EPAM's shares increased by 6% following the strong earnings results and positive guidance for the full year [2] Financial Performance - The year-over-year revenue growth was driven by strong performance in various industry verticals, particularly Financial Services, which saw a 34.4% increase [3][8] - Revenues from Financial Services accounted for 24.3% of total revenues, amounting to $328.3 million [3] - Other segments also showed growth: Consumer Goods, Retail & Travel revenues increased by 6.2% to $268 million; Software & Hi-Tech revenues rose by 21.2% to $204.7 million; Life Sciences & Healthcare revenues grew by 11.7% to $156.5 million; Business Information & Media revenues increased by 2.8% to $170.4 million; Emerging revenues surged by 28.7% to $225.5 million [4][8] Profitability Metrics - Non-GAAP gross profit increased by 9% year over year to $407.7 million, with a gross margin expansion of 140 basis points to 30.1% [5] - Non-GAAP operating income rose by 16.3% year over year to $202.9 million, with an operating margin expansion of 20 basis points to 15.0% [5] Balance Sheet and Cash Flow - As of June 30, 2025, EPAM had cash and cash equivalents of $1.05 billion, down from $1.18 billion as of March 31, 2025 [6] - Long-term debt slightly decreased to $25 million [6] - Cash flow from operations was reported at $53.2 million, with free cash flow at $43.4 million [6] Future Guidance - For Q3 2025, EPAM expects revenues between $1.365 billion and $1.380 billion, indicating a year-over-year growth of 17.6% at the midpoint [9] - Full-year 2025 revenue growth is projected to be between 13.0% and 15.0%, with organic constant currency growth expected between 3.0% and 5.0% [11] - GAAP diluted EPS for Q3 is anticipated to be between $1.89 and $1.97, while non-GAAP diluted EPS is projected between $2.98 and $3.06 [10]

Core Insights - Epam reported revenue of $1.35 billion for the quarter ended June 2025, reflecting an 18% increase year-over-year and a surprise of +1.53% over the Zacks Consensus Estimate of $1.33 billion [1] - The earnings per share (EPS) was $2.45, unchanged from the same quarter last year, but fell short of the consensus estimate of $2.61, resulting in an EPS surprise of -6.13% [1] Revenue Performance by Geography - Americas revenue reached $801.43 million, exceeding the average estimate of $799.89 million, with a year-over-year increase of +16% [4] - APAC revenue was $27.2 million, slightly above the average estimate of $27.19 million, marking a +13% year-over-year change [4] - EMEA revenue totaled $524.81 million, surpassing the average estimate of $498.6 million, with a significant year-over-year increase of +21.7% [4] Revenue Performance by Industry Verticals - Financial Services generated $328.31 million, exceeding the estimated $312.51 million, representing a robust +34.4% year-over-year growth [4] - Software & Hi-Tech revenue was $204.67 million, above the estimated $189.86 million, reflecting a +21.2% increase year-over-year [4] - Life Sciences & Healthcare revenue was $156.51 million, slightly below the estimated $162.54 million, with a +11.7% year-over-year change [4] - Emerging Verticals achieved $225.51 million, surpassing the estimated $215.24 million, indicating a +28.7% year-over-year growth [4] - Consumer Goods, Retail & Travel revenue was $268.05 million, slightly below the estimated $269.77 million, with a +6.2% year-over-year increase [4] Revenue Performance by Contract Type - Time-and-material contracts generated $1.09 billion, below the estimated $1.12 billion, with a +15.2% year-over-year increase [4] - Fixed-price contracts reached $258 million, exceeding the estimated $205.76 million, representing a +31.9% year-over-year growth [4] - Licensing and other revenues were $8.05 million, below the estimated $10.78 million, with a +9.9% year-over-year change [4] Stock Performance - Epam's shares have returned -11.3% over the past month, contrasting with the Zacks S&P 500 composite's +1.9% change, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to________ Commission file number: 001-35418 EPAM SYSTEMS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporati ...

分组1 - Epam reported quarterly earnings of $2.77 per share, missing the Zacks Consensus Estimate of $2.61 per share, but showing an increase from $2.45 per share a year ago, representing an earnings surprise of 6.13% [1] - The company posted revenues of $1.35 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.53%, and an increase from $1.15 billion year-over-year [2] - Epam has surpassed consensus EPS estimates four times over the last four quarters and has also topped consensus revenue estimates four times during the same period [2] 分组2 - The stock has underperformed, losing about 35.3% since the beginning of the year, while the S&P 500 has gained 7.9% [3] - The current consensus EPS estimate for the coming quarter is $2.88 on revenues of $1.35 billion, and for the current fiscal year, it is $10.89 on revenues of $5.37 billion [7] - The Computers - IT Services industry is currently in the bottom 40% of the Zacks industries, which may impact the stock's performance [8]