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Pegasystems PEGA shares soared 5.8% in the last trading session to close at $112.29. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.8% gain over the past four weeks.
The optimism surrounding the stock can primarily be attributed to the growing demand for Pegasystems solutions. The company’s strong platform and extensive artificial intelligence (AI) portfolio, enabling world-class businesses to attain transformative outcomes through real-time optimization, distinguishes it in the market. Its distinctive AI approach, Pega GenAI Blueprint, is a major driver of PEGA's expansion by showing clients how they can accelerate their digital transformation and achieve complete autonomy.
This business software company is expected to post quarterly earnings of $1.52 per share in its upcoming report, which represents a year-over-year change of -14.1%. Revenues are expected to be $482.32 million, up 1.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Pegasystems, the consensus EPS estimate for the quarter has been revised 11.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on PEGA going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Pegasystems belongs to the Zacks Computer - Software industry. Another stock from the same industry, Open Text OTEX, closed the last trading session 2.7% higher at $29.45. Over the past month, OTEX has returned 0.9%.
For Open Text , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.92. This represents a change of -25.8% from what the company reported a year ago. Open Text currently has a Zacks Rank of #3 (Hold).
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Pegasystems Inc. (PEGA) : Free Stock Analysis Report
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