Core Viewpoint - Three stocks, Dollar General, Expedia Group, and EPAM Systems, have shown strong upward momentum and are considered promising investments heading into 2026 [1][2]. Group 1: Dollar General - Dollar General's share price increased over 32% in the past month, driven by strong fiscal third-quarter results [5][8]. - The company reported a 4.6% year-over-year sales increase to $10.6 billion and a 43.8% rise in earnings per share to $1.28, surpassing Wall Street's estimate of $0.93 [5][8]. - Gross profit margin improved by 107 basis points to 29.9%, indicating enhanced profitability [5]. - The company opened 196 new stores and remodeled 1,175 locations during the quarter [6]. - Management raised earnings per share guidance for 2025 to a range of $6.30 to $6.50, up from $5.80 to $6.30 [8]. Group 2: Expedia Group - Expedia Group's stock rose nearly 23% in the past month, fueled by robust third-quarter results and an increased full-year revenue forecast [10][11]. - Revenue for the quarter increased by 9% to $4.4 billion, while gross bookings surged by 12% to almost $31 billion [10]. - Management raised full-year revenue growth guidance to 6%-7%, up from 3%-5%, and gross bookings growth is now projected at 7% [10][11]. - The positive results are attributed to rising travel demand, the use of artificial intelligence, and improved cost control [11]. Group 3: EPAM Systems - EPAM Systems' stock has rebounded over 26% in the past month, following a strong third-quarter earnings report [12][13]. - Adjusted earnings per share increased by 14.3% year-over-year, and revenue grew by 1.7%, both exceeding Wall Street expectations [13]. - Management raised full-year revenue guidance to a range of $4.69 billion to $4.7 billion, up from $4.59 billion to $4.63 billion, and adjusted profit outlook to between $10.73 and $10.81, up from $10.20 to $10.40 [14].

Core Insights - Senvest Management has significantly increased its stake in EPAM Systems, acquiring an additional 524,798 shares, bringing its total holdings to 968,404 shares valued at approximately $146 million, which constitutes 4.7% of Senvest's U.S. equity AUM [2][6] Company Performance - EPAM Systems reported a revenue increase of 19.4% year over year, reaching $1.4 billion, driven by strong demand in financial services, retail, and software sectors [9] - The company has authorized a $1 billion buyback program and repurchased $82.1 million in stock, indicating a commitment to shareholder returns [9] - Despite margin pressures, GAAP EPS fell to $1.91, while non-GAAP operating performance remained stable, with full-year guidance projecting a 15% revenue growth at the midpoint [9] Market Positioning - EPAM Systems is a leading global provider of digital engineering and software development services, focusing on complex technology solutions and digital transformation initiatives [5][7] - The company serves a diversified client base across various industries, including financial services, travel, consumer, software, media, and healthcare, employing over 61,000 people worldwide [7] Investment Sentiment - Senvest's increased investment in EPAM suggests a belief that the recent selloff may have overly discounted the company's fundamentals, which continue to show double-digit revenue growth and an expanding role in AI-driven digital transformation [6][10] - EPAM is viewed as a recovery bet backed by improving fundamentals, contrasting with other larger positions held by Senvest, indicating potential upside if market sentiment around IT services normalizes [10]

Core Insights - EPAM Systems, Inc. has launched seven new AI agents on Google Cloud Marketplace, showcasing its commitment to innovation and collaboration with Google Cloud [2][3] - The AI agents are designed to provide production-ready solutions across various industries, including finance, healthcare, and retail, enhancing operational efficiency and customer experiences [1][3] Product Offerings - The initial offering includes: 1. Agentic Know Your Customer (KYC) - Automates KYC processes for financial services [5] 2. Streamlined Document Authoring - Accelerates the creation of clinical trial documents [5] 3. AI for Drug Discovery (Cloud Pipeline) - Speeds up drug discovery through workflow orchestration [5] 4. Agentic AI Query Optimization - Optimizes SQL queries to reduce execution time and costs [5] 5. Retail Media Orchestration Toolkit - Provides advanced media and data toolkit for retail [5] 6. Video Processing Suite - Converts unstructured video libraries into searchable assets [5] 7. Talk to Your Data - Enables natural language data analysis [5] Strategic Collaboration - The launch of these AI agents marks a significant advancement in EPAM's collaboration with Google Cloud, focusing on engineering, solutions, and go-to-market strategies [2][3] - EPAM's expertise in engineering has been pivotal in adopting Gemini Enterprise, ensuring the agents are built on robust and interoperable foundations [3] Market Position - EPAM Systems has established itself as a leading provider of digital engineering and AI-enabled transformation services, recognized for its innovative solutions and commitment to client success [6][9] - The company has been acknowledged in various industry rankings, including the S&P 500 and Forbes Global 2000, highlighting its strong market presence [9]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales [3] Growth Score - The Growth Style Score assesses a company's financial health and future outlook, considering projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score evaluates trends in stock prices and earnings estimates, aiding investors in timing their positions in high-momentum stocks [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, growth forecasts, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988 [7][8] - There are over 800 top-rated stocks available, making selection challenging for investors [8] Stock Selection Strategy - Investors should prioritize stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] - Stocks with lower ranks but high Style Scores may still carry risks due to downward earnings forecasts [10] Company Spotlight: EPAM Systems, Inc. - EPAM Systems, Inc. is rated 2 (Buy) on the Zacks Rank and has a VGM Score of B, indicating strong growth potential [11] - The company is forecasted to achieve year-over-year earnings growth of 4.7% for the current fiscal year, supported by upward revisions from analysts [12] - The Zacks Consensus Estimate for EPAM's earnings has increased by $0.27 to $11.37 per share, with an average earnings surprise of +4.4% [12]

Core Insights - EPAM Systems, Inc. has been awarded the 2025 AWS Global Innovation Partner of the Year Award, recognizing its role in driving innovation and building solutions on Amazon Web Services (AWS) [1][2][3] Company Achievements - The award highlights EPAM's commitment to delivering innovative consulting, professional, managed, and value-added services, showcasing outstanding customer experience throughout the service lifecycle [1][3][4] - EPAM's partnership with AWS emphasizes mutual dedication to client value and innovation across various industries, focusing on measurable business outcomes [3][4] Product Innovations - EPAM has co-developed several AI-enabled solutions with AWS, including the EPAM AI/RUN™ for AWS Migration and Modernization, which utilizes AI-driven insights to facilitate application migration and modernization [4][6] - The company integrates advanced AI technologies into tailored business strategies, enhancing competitive advantage for clients [7][8] Industry Recognition - EPAM is recognized as a leading global provider of digital engineering and transformation services, having been added to the S&P 500 and Forbes Global 2000 in 2021 [10] - The company has received accolades for its multidisciplinary teams and is ranked among the top 15 companies in Information Technology Services in the Fortune 1000 [10]

Core Viewpoint - The comparison between Epam (EPAM) and Infosys (INFY) indicates that EPAM currently offers better value for investors based on its stronger earnings estimate revisions and more attractive valuation metrics [1][3][7]. Valuation Metrics - EPAM has a forward P/E ratio of 16.34, while INFY has a forward P/E of 21.69, suggesting that EPAM is more undervalued [5]. - The PEG ratio for EPAM is 2.00, compared to INFY's PEG ratio of 2.86, indicating that EPAM has a better expected EPS growth rate relative to its valuation [5]. - EPAM's P/B ratio stands at 2.78, significantly lower than INFY's P/B of 6.13, further supporting EPAM's valuation attractiveness [6]. Analyst Outlook - EPAM holds a Zacks Rank of 2 (Buy), reflecting a more favorable earnings estimate revision trend compared to Infosys, which has a Zacks Rank of 3 (Hold) [3][7]. - The stronger estimate revision activity for EPAM suggests a more positive analyst outlook, making it a more appealing option for value investors [3][7].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging [1] Group 1: Company Overview - Epam (EPAM) is currently highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2] Group 2: Earnings Growth - Historical EPS growth for Epam stands at 6.5%, but projected EPS growth is significantly higher at 28.2% for the current year, surpassing the industry average of 24% [4] Group 3: Asset Utilization - Epam's asset utilization ratio is 1.11, meaning it generates $1.11 in sales for every dollar of assets, which is more efficient than the industry average of 0.93 [5] Group 4: Sales Growth - The company's sales are expected to grow by 14.9% this year, compared to the industry average of 5.3%, indicating strong sales growth potential [6] Group 5: Earnings Estimate Revisions - The current-year earnings estimates for Epam have been revised upward, with the Zacks Consensus Estimate increasing by 3.6% over the past month, suggesting positive momentum [8] Group 6: Investment Positioning - Epam has achieved a Growth Score of B and a Zacks Rank of 2 due to positive earnings estimate revisions, positioning it well for potential outperformance in the growth stock category [10]

Market Overview - U.S. stock markets have experienced a significant bull run in 2023, with the Dow, S&P 500, and Nasdaq Composite increasing by 9.1%, 12.5%, and 15.5% respectively, while the S&P 400 index is up 2.2% year to date [1] Mid-Cap Stocks - Investment in mid-cap stocks is recognized as a strong portfolio diversification strategy, combining attributes of both small and large-cap stocks, with high potential for profitability and market share growth [2] - Mid-cap stocks are less susceptible to losses compared to large-cap stocks during economic slowdowns due to lower international exposure, and they can outperform small caps in a thriving economy due to established management and access to capital [3] Recommended Mid-Cap Technology Stocks - Five mid-cap technology stocks with favorable Zacks Rank and short-term price upside potential are Lyft Inc. (LYFT), GitLab Inc. (GTLB), EPAM Systems Inc. (EPAM), Onto Innovation Inc. (ONTO), and Semtech Corp. (SMTC), all carrying a Zacks Rank 2 (Buy) [4][8] Lyft Inc. (LYFT) - Lyft operates a ridesharing marketplace in the U.S. and Canada, benefiting from strong rider and driver growth, and aims to enter the robotaxi market through strategic partnerships [5][6] - Expected revenue and earnings growth rates for LYFT are 14.6% and 25.9% respectively for next year, with a short-term average price target indicating an 18.6% increase from the last closing price of $19.78, suggesting a maximum upside of 61.8% [9] GitLab Inc. (GTLB) - GitLab offers a DevOps platform that enhances software development efficiency, with strong enterprise demand for its AI-native solutions driving growth [10][11] - Expected revenue and earnings growth rates for GTLB are 19.7% and 16.7% respectively for next year, with a short-term average price target suggesting a 38.8% increase from the last closing price of $41.49, indicating a maximum upside of 73.5% [12] EPAM Systems Inc. (EPAM) - EPAM is benefiting from digital transformation trends and strategic acquisitions, with a focus on Gen AI capabilities expected to boost growth [13][14] - Expected revenue and earnings growth rates for EPAM are 6.9% and 9.9% respectively for next year, with a short-term average price target indicating a 15.7% increase from the last closing price of $180.98, suggesting a maximum upside of 40.9% [15] Onto Innovation Inc. (ONTO) - Onto Innovation is leveraging its diversified portfolio and AI-driven advanced packaging, with strong sales growth expected in the fourth quarter [16][17] - Expected revenue and earnings growth rates for ONTO are 14.8% and 19.9% respectively for next year, with a short-term average price target suggesting a 23.4% increase from the last closing price of $127.18, indicating a maximum upside of 41.5% [18] Semtech Corp. (SMTC) - Semtech is experiencing strong demand in industrial and datacenter markets, particularly for its connectivity solutions [19][20] - Expected revenue and earnings growth rates for SMTC are 10.1% and 24.5% respectively for next year, with a short-term average price target indicating a 15.3% increase from the last closing price of $63.85, suggesting a maximum upside of 41% [21]

Company Overview - EPAM Systems, Inc. is valued at a market cap of around $10 billion and is a global provider of digital platform engineering and software development services, offering solutions in cloud and data services, customer experience design, cybersecurity, and full-cycle product development across various industries including financial services, retail, technology, healthcare, and media [1] Stock Performance - Over the past 52 weeks, EPAM shares have declined by 26.2%, while the S&P 500 Index has increased by 11%. Year-to-date, EPAM shares have dipped 22.6%, compared to the S&P 500's 12.3% return [2] - EPAM's stock has underperformed the Technology Select Sector SPDR Fund, which has seen over a 17% increase in the same period [3] Recent Financial Results - On November 6, EPAM reported stronger-than-expected Q3 2025 adjusted EPS of $3.08 and revenue of $1.39 billion. The company raised its full-year adjusted EPS forecast to between $11.36 and $11.44 and increased its expected revenue growth for 2025 to 14.8% - 15.2%, driven by strong demand in AI, cloud, automation, and modernization spending [4] Analyst Expectations - For the fiscal year ending in December 2025, analysts expect EPAM's EPS to rise 1.9% year-over-year to $9.04. The company has a promising earnings surprise history, having beaten consensus estimates in the last four quarters. Among 17 analysts covering the stock, the consensus rating is a "Moderate Buy," with 10 "Strong Buy" ratings, one "Moderate Buy," and six "Holds" [5] Price Target and Analyst Ratings - Mizuho analyst Sean Kennedy increased EPAM's price target to $228 while maintaining an Outperform rating. The mean price target of $209.40 represents a 15.7% premium to EPAM's current price levels, and the Street-high price target of $255 suggests a potential upside of 40.9% [6]

Core Insights - EPAM Systems, Inc. is recognized as a leader in digital platform engineering and software development, particularly in AI and cloud computing, highlighted by the 2025 Microsoft Innovate with Azure AI Platform Partner of the Year Award [1] Financial Metrics - The company has a price-to-earnings (P/E) ratio of 26.58, indicating investor confidence in its profitability [3] - EPAM's price-to-sales ratio stands at 1.85 and its enterprise value to sales ratio is 1.65, reflecting strong revenue generation capabilities [3] - An enterprise value to operating cash flow ratio of 17.39 suggests efficient cash flow management, essential for sustaining operations and growth [4] - The earnings yield is 3.76%, indicating the company's ability to generate earnings relative to its share price [4] Financial Strengths - EPAM maintains a low debt-to-equity ratio of 0.042, showing minimal reliance on debt financing [5] - A current ratio of 3.02 demonstrates robust liquidity, ensuring the company can comfortably meet short-term obligations [5] Insider Transactions - On November 17, 2025, Vice President Gary C. Abrahams sold 600 shares at $179.29 each, which may provide insights into the executive's perspective on the company's stock value and future direction [2][6]