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Here's Why Epam (EPAM) is a Strong Momentum Stock
ZACKS· 2025-11-11 15:51
Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes finding undervalued stocks using financial ratios [3] - Growth Score focuses on a company's financial health and future growth potential [4] - Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points [5] - VGM Score combines the three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.93%, significantly outperforming the S&P 500 [8] - There are over 800 top-rated stocks available, making it essential to utilize Style Scores for effective selection [9] Investment Strategy - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with lower ranks but high Style Scores may still carry risks due to downward earnings forecasts [11] Company Spotlight: EPAM Systems, Inc. - EPAM Systems, Inc. is rated 2 (Buy) with a VGM Score of B, indicating strong potential [12] - The company has shown a Momentum Style Score of B, with shares increasing by 24.3% in the past four weeks [12] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate rising by $0.07 to $11.15 per share [13] - EPAM has an average earnings surprise of +4.4%, making it a strong candidate for investors [13]