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Newtown, Pennsylvania-based EPAM Systems, Inc. (EPAM) provides digital platform engineering and software development services. Valued at a market cap of $8.7 billion, the company serves clients across a wide range of industries, including financial services, healthcare, retail, travel, and technology.
Companies worth $2 billion or more are typically classified as “mid-cap stocks,” and EPAM fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the information technology services industry. The company’s specialty lies in combining consulting, design, and engineering to deliver end-to-end digital transformation solutions. It is highly regarded for its agility, innovation, and top-tier engineering talent, enabling clients to build scalable, cloud-native, and AI-driven platforms.
This tech company has slipped 42.7% from its 52-week high of $269, reached on Feb. 18. Shares of EPAM have declined 8.3% over the past three months, considerably underperforming the Fidelity MSCI Information Technology Index ETF’s (FTEC) 17.6% return during the same time frame.
In the longer term, EPAM has fallen 22.5% over the past 52 weeks, significantly lagging behind FTEC's 29.3% uptick over the same time period. Moreover, on a YTD basis, shares of EPAM are down 34.1%, compared to FTEC’s 19.9% rise.
To confirm its bearish trend, EPAM has been trading below its 200-day moving average since late February, and has remained below its 50-day moving average since early September.
Shares of EPAM surged 4.3% on Aug. 7, after its impressive Q2 earnings release. The company’s revenue improved 18% year-over-year to $1.4 billion, while its adjusted EPS of $2.77 advanced 13.1% from the prior-year quarter. Moreover, EPAM raised its fiscal 2025 guidance, noting its solid momentum. It now expects revenue growth to be in the range of 13% to 15%, and projects adjusted EPS to be between $10.96 and $11.12, further bolstering investor confidence.
EPAM has outpaced its rival, Accenture plc’s (ACN) 30.6% drop over the past 52 weeks. However, it has lagged behind ACN’s 33.1% loss on a YTD basis.
Despite EPAM’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 16 analysts covering it, and the mean price target of $211.64 suggests a 37.4% premium to its current price levels.
