Here's Why Investors Should Buy EPAM Systems Stock Right Now

Core Viewpoint - EPAM Systems has shown strong stock performance, rising 15.7% over the past three months, significantly outperforming the Zacks Computers - IT Services industry and broader market indices, indicating a positive investment outlook due to strong fundamentals and growth strategies [1] Group 1: AI Expansion - EPAM is expanding its presence in the AI sector through partnerships with major companies like Google Cloud, Microsoft, and Salesforce, focusing on scalable AI solutions [1][2] - The collaboration with Alphabet allows EPAM to utilize Google Cloud's Vertex AI platform for generative AI solutions, enhancing modernization efforts for clients [2] - EPAM's promotion to Microsoft's Globally Managed Enterprise Systems Integrator partner status enables the development of cloud-based applications via Azure OpenAI Service [3] - The partnership with Salesforce has led to the creation of the Salesforce Service Agent AI Coach, an AI tool that analyzes customer service interactions [3] Group 2: Strategic Acquisitions - EPAM is pursuing strategic acquisitions to enhance market presence and product expertise, including the acquisition of Vates in 2024 to strengthen its position in Latin America [5] - The acquisition of First Derivative brought generative AI-enabled financial solutions and over 100 clients from capital markets, expanding EPAM's reach in North America, Europe, and APAC [6] - Acquiring Odysseus has deepened EPAM's expertise in the life sciences sector, while NEORIS has contributed capabilities in digital experience, engineering SAP, data analytics, machine learning, and AI across various industries [7] Group 3: Financial Outlook - Analysts have a positive outlook for EPAM, with the Zacks Consensus Estimate for 2025 revenues at $5.25 billion, reflecting a year-over-year growth of 12% [8] - The consensus for earnings also indicates a modest 5% year-over-year growth for 2025, with EPAM consistently surpassing earnings estimates in the past four quarters, averaging a surprise of 9.9% [8] Group 4: Investment Recommendation - Given the rapid expansion in the AI space through partnerships and acquisitions, EPAM is positioned as a promising investment for 2025 and beyond, making it advisable to consider buying the stock [10]