Core Insights - Pegasystems Inc. (NASDAQ: PEGA) reported significant growth in its most recent quarter, primarily benefiting from the transition to a Subscription business model [1] Group 1: Financial Performance - The company experienced a strong performance in Q3, indicating a positive trend in its financial results [1] - The success of the Subscription business transition has been a key driver of this growth, although consistency in performance has varied in previous quarters [1]

Core Insights - The productivity software sector has seen increased demand due to rising employee costs and the shift to remote work, driving the need for tools that enhance corporate productivity [1] - The 17 tracked productivity software stocks reported a strong Q2, with revenues exceeding analysts' expectations by 2.9% and an average share price increase of 5.6% since the earnings results [2] monday.com Performance - monday.com reported revenues of $299 million for Q2, reflecting a year-on-year increase of 26.6% and surpassing analysts' expectations by 1.8% [4] - The company demonstrated strong performance with significant beats in both EBITDA and annual recurring revenue estimates, indicating effective growth strategies [4] - Despite the positive earnings report, monday.com's stock has declined by 26.6% since the announcement, currently trading at $182 [5] Pegasystems Performance - Pegasystems achieved revenues of $381.4 million in Q2, marking a 17.3% year-on-year increase and outperforming analysts' expectations by 8.5% [7] - The company had a notable quarter with substantial beats in both billings and EBITDA estimates, leading to a 3.9% increase in stock price since reporting, currently trading at $59.30 [8]

Core Viewpoint - Pegasystems Inc. (NASDAQ:PEGA) is a software company specializing in CRM and BPM solutions, offering customizable and scalable options that differentiate it from competitors like Salesforce and Oracle [1][5] Financial Performance - PEGA has experienced a recent decline of 6.95% over the past 10 days but has shown resilience with a monthly gain of 9.53, indicating potential for recovery [2][5] - The company has a robust financial health, evidenced by a Piotroski Score of 8, indicating efficient operations, profitability, and liquidity [4][5] Growth Potential - Analysts project a 21.25% increase in PEGA's stock price, with a target price set at $74, reflecting confidence in the company's strategic initiatives and market positioning [3]

Core Viewpoint - Investors in Pegasystems Inc. (PEGA) should closely monitor the stock due to significant movements in the options market, particularly the high implied volatility of the Dec. 19, 2025 $22.50 Put option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectation of future stock movement, with high levels suggesting anticipation of a significant price change or an upcoming event that could trigger a rally or sell-off [2] - The current high implied volatility for Pegasystems options may signal a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4] Group 2: Analyst Sentiment - Pegasystems holds a Zacks Rank 3 (Hold) in the Computer – Software industry, which is in the top 37% of the Zacks Industry Rank [3] - Over the past 60 days, there has been mixed analyst sentiment, with one analyst increasing earnings estimates for the current quarter while two have decreased theirs, resulting in a slight increase in the Zacks Consensus Estimate from 73 cents to 74 cents per share [3]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with higher scores indicating a better chance of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies attractive stocks using financial ratios like P/E, PEG, and Price/Sales, targeting undervalued stocks [3] Growth Score - The Growth Score assesses a company's financial health and future outlook, focusing on earnings, sales, and cash flow for sustainable growth [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, utilizing recent price changes and earnings estimate shifts [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for evaluating stocks based on value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7][8] Stock Selection Strategy - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [10] - Stocks with a 3 (Hold) rank should also have A or B Scores to maximize upside potential [10] Earnings Estimate Revisions - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face price declines due to negative earnings forecasts [11] Company Spotlight: Pegasystems (PEGA) - Pegasystems is an enterprise software provider focused on AI-driven decision-making and workflow automation, currently holding a 3 (Hold) Zacks Rank with a VGM Score of B [12] - The stock has shown a 13.7% increase over the past four weeks, with upward revisions in earnings estimates leading to a consensus estimate of $2.08 per share for fiscal 2025 [13] - Pegasystems has an average earnings surprise of +80.5%, making it a notable option for investors [13]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank, helping investors identify securities likely to outperform the market 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 financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score assesses a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends by evaluating short-term price changes and earnings estimate revisions [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, growth potential, and positive 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 +23.81% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Stock Highlight: Pegasystems (PEGA) - Pegasystems is an enterprise software provider specializing in AI-driven decision-making and workflow automation [11] - Currently rated 3 (Hold) with a VGM Score of B, PEGA has a Growth Style Score of A, indicating a projected year-over-year earnings growth of 37.8% for the current fiscal year [11][12] - Recent upward revisions by analysts have increased the Zacks Consensus Estimate for PEGA to $2.08 per share, with an average earnings surprise of +80.5% [12]

Core Insights - Pegasystems stock experienced a significant increase of 24.2% over the past week, closing higher compared to the previous week's market close [1] - The company's valuation improved following better-than-expected quarterly results and the announcement of AI growth initiatives, coinciding with a positive market trend where the S&P 500 rose by 1.9% and the Nasdaq Composite increased by 2.3% [2] Financial Performance - Pegasystems reported its third-quarter results on October 22, exceeding market expectations with non-GAAP earnings of $0.30 per share and sales of approximately $352 million. Revenue grew over 17% year-over-year, while adjusted net income surged by 59% [4] - The annual contract value for the Pega Cloud offering showed strong growth, and management highlighted initiatives aimed at sustaining this momentum [4] Future Outlook - The company is focused on enhancing its tools for enterprises to develop large language models (LLMs) for AI, believing that its Pega Blueprint suite has transformative potential to reduce the time from application design to production [5] - Pegasystems anticipates that the Pega Blueprint will significantly shorten sales cycles and support continued strong sales growth [5] Market Context - Despite the recent positive developments, Pegasystems' stock is still down approximately 1% over the last five years, contrasting with the nearly doubling performance of the S&P 500 during the same period [6]

Core Insights - Pegasystems has demonstrated significant growth, with shares rising 15% on October 22 following impressive earnings results, outperforming other tech stocks like Intuitive Surgical [1][2] - The company has achieved a total return of approximately 89% over the past 52 weeks, indicating strong investor interest and confidence in its future prospects [2] Financial Performance - In Q3, Pegasystems reported revenue of approximately $381 million, reflecting a growth rate of 17.3%, which exceeded expectations of $352 million and 8.1% growth [2] - The adjusted earnings per share (EPS) of 30 cents surpassed estimates of 18 cents, marking a 50% increase from the previous year, while analysts had forecasted a 10% decline [2] Growth Indicators - The Pega Cloud average contract value (ACV) grew by 27%, indicating strong demand for the company's cloud-based solutions, and this growth rate accelerated from 25% in the previous quarter [3][4] - The growth in ACV suggests potential for future revenue acceleration, as it reflects new, annually recurring business added during the quarter [3] Product Innovation - The GenAI Blueprint is a key driver of Pegasystems' growth, enabling customers to design internal applications more efficiently and automate tasks predictably, which is particularly valuable in regulated industries [5][6] - The unique capabilities of GenAI Blueprint position Pegasystems favorably in the market, with potential for further client acquisition and revenue growth [6] Analyst Sentiment - Pegasystems has a 12-month stock price forecast of $69.61, indicating a potential upside of 5.04%, with an average price target among analysts moving up by nearly 17% following the latest earnings report [7][8] - The stock has shown a consistent pattern of positive performance post-earnings, with an average increase of 10% over the last 12 quarters, reinforcing analyst confidence in the company's ability to deliver strong results [7]

Core Insights - Pegasystems Inc. has been named a Leader in the Gartner Magic Quadrant for Business Orchestration and Automation Technology [1] - The company received recognition for its Completeness of Vision and Ability to Execute [1] - Pegasystems achieved the highest scores for two Critical Capabilities use cases: Case Management [1]

Core Viewpoint - Pegasystems Inc. (NASDAQ:PEGA) is identified as an overlooked AI stock with a potential upside, supported by a positive outlook from analysts and expected strong revenue growth from its cloud offerings [1][2]. Financial Performance - The company is set to report its third-quarter earnings on October 21, with expectations of strong adoption of its Blueprint offering, which is projected to drive approximately 18% growth in cloud revenue for the year, contributing up to 45% of total revenue [2]. - Pegasystems' cloud annual contract value (ACV) increased by 28% year-over-year on a constant currency basis in the second quarter, with total ACV reaching $1,514 million, indicating a 16% year-over-year growth [3]. Analyst Ratings - Rosenblatt has reiterated a 'Buy' rating on Pegasystems and raised the price target from $61 to $65, suggesting a potential upside of about 16% [1].