Core Insights - EPAM Systems, Inc. is hosting an Investor Day on March 12, 2026, to showcase its long-term growth strategy and progress in AI-driven business transformation [1][2] - The event will feature presentations from the CEO, CFO, and other executives, highlighting EPAM's unique capabilities in AI and digital transformation [2][3] Company Overview - EPAM Systems has been a leader in digital engineering and AI-enabled transformation services since 1993, focusing on addressing clients' transformation challenges through integrated strategies and technology consulting [5][6] - The company leverages AI and GenAI to enhance clients' digital innovation and competitive edge, utilizing platforms like EPAM AI/RUN™ and initiatives such as DIALX Lab [6][7] Market Position - EPAM was added to the S&P 500 and Forbes Global 2000 in 2021 and has received recognition as a top workplace by Glassdoor and Newsweek [8] - The company ranks among the top 15 in Information Technology Services within the Fortune 1000 and is recognized as a leader in various IDC MarketScapes [8]

Core Insights - The article emphasizes the focus on value investing in Asia, particularly in Hong Kong, targeting stocks with significant discrepancies between market price and intrinsic value [1] - It highlights two main categories of investment opportunities: deep value balance sheet bargains and wide moat stocks, which are characterized by their strong competitive advantages [1] Group 1: Investment Strategy - The investment strategy involves seeking deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) ratio stocks [1] - The strategy also includes identifying wide moat stocks, which are high-quality businesses with sustainable competitive advantages [1] Group 2: Research Service - The research service, Asia Value & Moat Stocks, provides value investors with ideas and monthly updates on potential investment opportunities in the Asian equity market [1] - The service is led by an analyst with over a decade of experience in both buy and sell sides of the market, focusing on the Hong Kong market [1]

Core Insights - The article emphasizes the focus on value investing in Asia, particularly in Hong Kong, targeting stocks with significant discrepancies between market price and intrinsic value, including deep value balance sheet bargains and wide moat stocks [1]. Group 1: Investment Strategy - The research service aims to identify Asia-listed stocks that are undervalued, specifically looking for deep value balance sheet bargains such as net cash stocks and low price-to-book (P/B) ratio stocks [1]. - The service also focuses on wide moat stocks, which are characterized by strong competitive advantages and the ability to generate earnings power at a discount [1]. Group 2: Market Expertise - The analyst has over a decade of experience in the Asian equity market, providing insights from both buy and sell sides, which enhances the credibility of the investment ideas presented [1]. - The investment group offers monthly updates and watch lists to keep investors informed about potential opportunities in the market [1].

Group 1 - UniCredit CEO Andrea Orcel has engaged in discussions regarding the potential acquisition of the stake in Monte dei Paschi di Siena (MPS) held by Delfin [1] - The talks have involved direct communication with the head of the Italian holding company Delfin [1] - This move indicates UniCredit's interest in expanding its influence in the Italian banking sector through strategic acquisitions [1]

Core Viewpoint - The article compares Genpact (G) and Epam (EPAM) to determine which stock is more attractive to value investors, highlighting the importance of various valuation metrics in this assessment [1]. Group 1: Valuation Metrics - Genpact has a forward P/E ratio of 12.12, while Epam has a forward P/E of 17.40, indicating that Genpact may be undervalued compared to Epam [5]. - Genpact's PEG ratio is 1.26, which is lower than Epam's PEG ratio of 2.13, suggesting that Genpact offers better value when considering expected earnings growth [5]. - Genpact has a P/B ratio of 3.25, slightly lower than Epam's P/B of 3.26, further supporting the argument that Genpact is a more attractive value option [6]. Group 2: Earnings Outlook - Both Genpact and Epam hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks for both companies [3]. - Despite the positive earnings outlook for both companies, value investors will focus on traditional figures and metrics to assess undervaluation [3]. Group 3: Value Grades - Genpact has earned a Value grade of A, while Epam has a Value grade of C, reinforcing the conclusion that Genpact is the superior value option at this time [6].

Core Insights - The partnership between EPAM and Cursor aims to accelerate clients' transformation into AI-Native technology organizations by leveraging EPAM's extensive engineering expertise and Cursor's integrated development environment (IDE) [1][2][3] Company Overview - EPAM Systems, Inc. has established itself as a leading global provider of digital engineering, cloud, and AI-enabled transformation services since its inception in 1993, focusing on addressing clients' transformation challenges through integrated strategy and technology consulting [5][8] - The company has been recognized for its excellence, being added to the S&P 500 and Forbes Global 2000 in 2021, and is noted as a top company in Information Technology Services within the Fortune 1000 [8] Partnership Details - The collaboration with Cursor is designed to enhance the adoption of AI coding tools within large enterprises, addressing challenges in full adoption and daily use of these tools [2][3] - EPAM's support for Cursor includes deploying AI-Native workflows across thousands of developers, integrating advanced AI models, and providing training and change management to facilitate the transition to AI-first environments [9] Industry Impact - The partnership is positioned to redefine software development practices, enabling organizations to embrace AI-native approaches that enhance productivity and drive sustainable transformation [3][6] - By combining EPAM's engineering capabilities with Cursor's innovative IDE, clients can expect measurable improvements in efficiency, adoption rates, and return on investment [3][9]

Company Overview - EPAM Systems, Inc. is a global technology services provider with a market capitalization of $11.41 billion and over 60,000 employees, focusing on digital transformation projects and maintaining a diversified client base [4][7] - The company reported a trailing twelve months (TTM) revenue of $5.30 billion and a net income of $371.62 million [4] Recent Developments - Wishbone Management initiated a new position in EPAM Systems by acquiring 100,000 shares valued at $15.08 million, representing 8.11% of the fund's 13F reportable assets under management as of September 30 [2][3] - EPAM shares are currently priced at $204.88, down 12% over the past year, while the S&P 500 gained approximately 16% during the same period [3] Financial Performance - EPAM reported $1.394 billion in third-quarter revenue, reflecting a year-over-year increase of 19.4%, and raised its full-year revenue outlook for 2025 to approximately $5.43 billion to $5.45 billion [5][8] - The company has also repurchased $82.1 million of its stock during the quarter and authorized an additional $1 billion buyback program [8] Strategic Positioning - EPAM stands out as the only pure-play digital engineering name in Wishbone Management's portfolio, which includes exposure to industrial distribution, airlines, and payments infrastructure [9] - The company's services span AI, automation, and digital design, serving clients across various industries including financial services, travel, software, media, and healthcare [7]

Core Viewpoint - EPAM Systems, Inc. is a significant player in the digital engineering and IT consulting sector, with a market cap of $11.6 billion, specializing in software development and AI-driven solutions [1][2]. Company Overview - EPAM is based in Newtown, Pennsylvania, and focuses on helping enterprises design, build, and modernize complex software and digital platforms [1]. - The company serves various industries, including financial services, healthcare, consumer goods, and technology [1]. Market Position - EPAM is classified as a large-cap stock due to its market cap exceeding $10 billion, indicating its size and influence in the IT services industry [2]. - The company is recognized for its strong engineering talent and delivery excellence, partnering with large global enterprises for digital transformation [2]. Stock Performance - EPAM shares have decreased by 21.1% from their 52-week high of $269, reached on February 18 [3]. - Over the past three months, EPAM shares have increased by 37.3%, underperforming the S&P 500 Index, which surged by 3% during the same period [3]. - In the long term, EPAM has fallen 13.3% over the past 52 weeks, while the S&P 500 Index has increased by 12.7% [4]. - Year-to-date, EPAM shares are down 9.3%, compared to a 15.9% rise in the S&P 500 Index [4]. Recent Developments - On December 9, EPAM shares rose approximately 3% after the announcement of seven new AI agents on the Google Cloud Marketplace, aimed at addressing complex use cases in finance, healthcare, and retail [5]. - The new solutions include KYC automation, drug discovery acceleration, and clinical trial documentation, enhancing investor confidence in EPAM's AI capabilities and collaboration with Google Cloud [5]. Competitive Landscape - EPAM has outperformed its rival, Accenture plc, which has seen a 23.4% drop over the past 52 weeks and a 21.9% loss year-to-date [6].

Summary of IT Services Industry Outlook and Key Insights Industry Overview - The IT Services industry is expected to see improved demand in 2026 as AI proof-of-concept projects transition to broader enterprise implementations, particularly benefiting consulting services [1][4] - Despite the anticipated improvements, the narrative surrounding AI disruption in IT Services is expected to persist, although it may diminish as the complexities of enterprise AI become more recognized [2][37] Key Insights Demand and Spending Trends - IT Services spending is projected to improve year-over-year for the first time in four years, shifting from infrastructure-focused spending to include applications and services [3][4] - Global IT spending is expected to reach $6.1 trillion in 2026, growing by 10% year-over-year [20] Business Model Evolution - Business models are evolving from time and materials to more outcome-based pricing, although this transition will not be universal due to varying complexities [5][62] - The shift towards outcome-based pricing is seen as a potential for higher margins, despite initial perceptions of deflationary pressures [62] Margins and Valuations - Margins are expected to be managed flat to slightly higher, but ongoing investments in AI may limit significant upside [5][84] - IT Services firms are currently experiencing depressed valuations, with multiples at historic lows, making it an attractive entry point for investors [6][34][92] Top Picks in IT Services - The top picks for large, mid, and small-cap companies within the IT Services sector are Cognizant (CTSH), EPAM Systems (EPAM), and Grid Dynamics (GDYN), respectively [1][15] - Cognizant is expected to see organic growth exit 2026 at a mid to high single-digit pace, while EPAM and GDYN are projected to improve their growth rates significantly [15][19] AI and Partnerships - Partnerships with IT Services firms are becoming increasingly vital for AI companies, as they often lack the sophistication to manage enterprise workflows independently [3][78] - The emergence of "killer use cases" in AI is anticipated to drive increased investment in growth-oriented initiatives, necessitating back-end modernization [4][59] Market Performance - The IT Services sector has underperformed the S&P 500 for four consecutive years, with a year-to-date decline of 26% [28][31] - Despite the underperformance, the sector is expected to outperform in 2026 as multiples re-rate higher due to improved growth prospects [6][34] Future Outlook - The complexity of enterprise AI is significantly underestimated, indicating a continued need for IT Services expertise as enterprises transform [10][44] - The overall sentiment suggests that while AI disruption fears remain, the reality of implementing enterprise AI will require specialized knowledge and support from IT Services firms [2][44] Conclusion The IT Services industry is poised for a recovery in 2026, driven by a shift in spending patterns and the maturation of AI applications. While challenges remain, particularly regarding valuations and the ongoing narrative of AI disruption, the sector presents potential investment opportunities, especially in firms that are adapting their business models and forming strategic partnerships.

Core Viewpoint - Investors in the Computers - IT Services sector should consider TD SYNNEX (SNX) and Epam (EPAM) as potential value opportunities, with SNX currently presenting a superior value option based on various valuation metrics [1]. Valuation Metrics - Both TD SYNNEX and Epam have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3]. - SNX has a forward P/E ratio of 10.84, while EPAM has a forward P/E of 18.37, suggesting that SNX is more attractively priced [5]. - The PEG ratio for SNX is 1.02, compared to EPAM's PEG ratio of 2.25, indicating that SNX may offer better value relative to its expected earnings growth [5]. - SNX has a P/B ratio of 1.5, while EPAM's P/B ratio is 3.13, further supporting the argument that SNX is undervalued compared to EPAM [6]. - Based on these metrics, SNX holds a Value grade of A, while EPAM has a Value grade of C, reinforcing the conclusion that SNX is the better value option [6].