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Bear of the Day: EPAM Systems (EPAM)

ZacksEPAM Systems (EPAM) recently beat the Zacks Consensus Estimate but is now a Zacks Rank #5 (Strong Sell) and is the Bear of the Day. Let’s take a look at why this is the case.


EPAM Systems, Inc. provides software engineering solutions and technology consulting services worldwide. The company was founded in 1993 and is headquartered in Newtown, Pennsylvania.

Recent Earnings

EPAM beat the Zacks Consensus Estimate of $0.54 by $0.02 for a positive earnings surprise of 3.7%. Revenue came in at $298M while the Zacks Consensus Estimate was looking for $297M.

Along with the beat came news of the CFO leaving. This is the second CFO to leave the company in the last few years, something that Wall Street doesn’t like to see.


The Zacks Consensus Estimate has been falling over the last few months. The FY16 estimate stood at $2.19 in April and then fell to $2.09 in September. The estimate currently states at $2.06.

The move lower was mainly due to lowered guidance on the most recent earnings release.

The decline in estimates is the main reason this is a Zacks Rank #5 (Strong Sell) and the Bear of the Day.


Zacks has developed a chart that helps investors see how earnings estimates have impacted the price of the stock over the last several years. We call this chart the price and consensus chart, and each color-coded lines represents analyst estimates over a designated year. As estimates increase, the stock tends to follow. The Zacks Rank is impacted by earnings estimate increases, beats and incorporates the idea of analyst agreement and magnitude. As a Zacks Rank #5 (Strong Sell) we see that estimates are moving higher.

EPAM SYSTEMS Price, Consensus and EPS Surprise

EPAM SYSTEMS Price, Consensus and EPS Surprise | EPAM SYSTEMS Quote

More Stocks to Sell. Now.

Beyond our Bear Stock of the Day, today’s list of 220 Zacks Rank #5 Strong Sells demand even more urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. Many appear to be sound investments but, since 1988, such stocks have actually performed more than 11X worse than the S&P 500.

See today’s Zacks “Strong Sells” absolutely free >>.

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EPAM SYSTEMS (EPAM): Free Stock Analysis Report

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