NEW YORK (TheStreet) -- EPAM Systems (EPAM - Get Report) soared 16.21% to $37.21, up $5.19 from its previous close of $32.02, at the close of the trading day on Tuesday as the company surged on heavy volume.
The stock had a volume of 3,634,795, nearly 10 times its average of 385,965. It hit a high of $38.43 and a low of $34.80 for the day. The stock holds a one-year high of $46.70 and a one-year low of $20.50.
EPAM plummeted nearly 25% on Monday, but the stock recovered approximately two-thirds of that loss by the end of the trading day on Tuesday.
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TheStreet Ratings team rates EPAM SYSTEMS INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate EPAM SYSTEMS INC (EPAM) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 20.8%. Since the same quarter one year prior, revenues rose by 25.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- EPAM has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.66, which clearly demonstrates the ability to cover short-term cash needs.
- EPAM SYSTEMS INC has improved earnings per share by 18.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, EPAM SYSTEMS INC increased its bottom line by earning $1.28 versus $1.20 in the prior year. This year, the market expects an improvement in earnings ($1.91 versus $1.28).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the IT Services industry average. The net income increased by 25.1% when compared to the same quarter one year prior, rising from $15.00 million to $18.76 million.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 96.37% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: EPAM Ratings Report