Pegasystems Inc. : One could take advantage of the market's hesitation
Entry price | Target | Stop-loss | Potential |
---|
US$60.3 |
US$68 |
US$57.8 |
+12.77% |
---|
After having been stuck in a trading range, shares in Pegasystems Inc. are returning to the lower bound of the range phase. This appears to be a good opportunity for opening new positions.
Summary● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Predictions on business development from analysts polled by Thomson-Reuters are tight. This results from either a good visibility into core activities or accurate earnings releases.
● Sales forecast by analysts have been recently revised upwards.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 55.65 USD
Weaknesses● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 107.37 times its estimated earnings per share for the ongoing year.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.