Pegasystems (PEGA) Upgraded to Strong Buy: Here's What You Should Know

Core Viewpoint - Pegasystems (PEGA) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, making it a valuable tool for investors [2][4]. - For Pegasystems, the recent upgrade reflects an improvement in the company's underlying business, which is expected to drive stock price appreciation [5]. Earnings Estimate Revisions - Pegasystems is projected to earn $3.56 per share for the fiscal year ending December 2025, representing a year-over-year increase of 17.5% [8]. - Over the past three months, the Zacks Consensus Estimate for Pegasystems has risen by 21.6%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Pegasystems' upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].