Pegasystems (PEGA) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Th ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

Here are two stocks with buy rank and strong momentum characteristics for investors to consider today, June 5th: Pegasystems (PEGA) : This company which is a leading provider of Customer Relationship Management software that enables transaction-intensive organizations to manage a broad array of customer interactions, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.4% over the last 60 days. Learn more about the Momentum score and how it i ...

Summary of Pegasystems (PEGA) Investor Session - June 02, 2025 Company Overview - **Company**: Pegasystems (PEGA) - **Event**: Investor Session - **Date**: June 02, 2025 Key Points and Arguments Company Strategy and Differentiation - **AI Integration**: The company emphasizes the importance of using AI to design specific workflows rather than relying solely on textual prompts for automation. This approach aims to enhance reliability and predictability in business processes [9][11][12]. - **Workflow Engine**: Pegasystems has a state-of-the-art workflow engine that integrates AI to facilitate conversational interactions while maintaining workflow integrity [12][16]. - **Center Out Architecture**: The architecture allows for a unified approach to business processes, ensuring consistent outcomes across different customer channels [18][19]. Market Opportunity - **Market Size**: The addressable market for Pegasystems is estimated to be around $90 billion, potentially growing to $150 billion in the coming years, indicating a double-digit growth rate [70][74]. - **Cloud Adoption**: There is a significant trend towards cloud migration, with expectations that 80% of enterprise applications will be cloud-based within the next five to seven years [75][76]. - **Legacy Transformation**: Many companies are still on legacy systems, and Pegasystems positions itself as a leader in addressing the challenges of legacy transformation [77][78]. Product Innovations - **Blueprint Technology**: The introduction of Blueprint technology is highlighted as a game changer for legacy transformation, allowing for rapid ideation and workflow creation [30][80]. - **Partner Collaboration**: Pegasystems is collaborating with major partners like Accenture to create branded blueprints that leverage their unique intellectual property [82][84]. - **Pricing Model**: A new pricing model allows customers to access up to 80,000 pieces of work for as little as $60,000 a year, making it more accessible for a broader range of clients [29]. Financial Update and Capital Allocation - **Capital Allocation Strategy**: The CFO will provide insights into the company's capital allocation strategy, which is expected to be discussed in detail for the first time during this session [6]. AI and Automation - **Generative AI**: The company is leveraging generative AI to enhance its offerings, particularly in automating workflows and improving customer interactions [30][89]. - **Agentic AI**: There is a focus on combining the creativity of agentic AI with the predictability of established workflows to ensure consistent enterprise operations [89][90]. Additional Important Insights - **Sales Strategy**: Pegasystems is cautious about not disrupting its existing sales channels while exploring new market opportunities with partners [35][36]. - **Productivity Improvements**: The company has seen significant productivity improvements, allowing sales teams to conduct demonstrations independently, which enhances efficiency [44]. - **Data Management**: The company is addressing data rationalization challenges associated with legacy systems, ensuring that data can be effectively integrated into new workflows [56][57]. This summary encapsulates the core discussions and insights from the Pegasystems investor session, highlighting the company's strategic direction, market opportunities, product innovations, and financial outlook.

Core Viewpoint - Pegasystems (PEGA) shares have underperformed compared to the broader technology sector and its peers, but the company is leveraging innovative solutions to enhance its market position and drive growth [1][7]. Group 1: Competitive Landscape - PEGA shares have increased by 5.4% over the past month, lagging behind the Zacks Computer and Technology sector's growth of 8.8% and the Computer Software industry's growth of 12.4% [1]. - The company faces significant competition in the enterprise automation space from major players such as ServiceNow, Oracle, and Microsoft, which have seen share price increases of 15.1%, 11.3%, and 7.1%, respectively [1]. Group 2: Product Innovations - Pegasystems is experiencing strong demand for its GenAI Blueprint solution, which utilizes AI to streamline the design of enterprise workflow applications, making the process faster than traditional methods [2]. - The company has introduced new features to the Blueprint, allowing users to interact with workflows and perform tasks such as creating accounts or correcting billing issues [3]. - The launch of the Blueprint for Government Efficiency Toolkit represents a significant advancement in the company's offerings [3]. Group 3: Financial Performance - In Q1 2025, PEGA reported a 13% year-over-year increase in annual contract value (ACV) to $1.45 billion, with Cloud ACV growing by 23% to $701 million [5]. - Revenues for the same quarter rose by 44% year-over-year to $475.6 million, surpassing the Zacks Consensus Estimate by 33.6% [5]. Group 4: Earnings Estimates - The Zacks Consensus Estimate for PEGA's 2025 earnings is $3.26 per share, reflecting a 5.2% increase over the past 60 days and a 7.59% growth compared to 2024 [6]. - The consensus revenue estimate for 2025 stands at $1.61 billion, indicating a 7.35% growth over the previous year [6].

Core Insights - Cognizant is expanding its collaboration with Pegasystems to enhance its modernization services with Pega Blueprint, aiming to facilitate cloud transformations for enterprises [1][4] - The partnership focuses on addressing the challenges faced by enterprises using legacy systems, which incur significant operational and hidden costs [2][4] - The integration of Cognizant's IP with Pega Blueprint will enable rapid development of Minimum Viable Products, enhancing innovation and efficiency in transformation projects [2][5] Group 1 - Cognizant aims to help customers optimize processes and build AI-powered systems on the Pega Infinity platform by leveraging AI-driven legacy code rewrite capabilities [3][4] - The collaboration is positioned to redefine enterprise modernization, moving away from traditional methods to AI-infused transformation journeys [4][5] - Cognizant will showcase Pega Blueprint-driven industry solutions at PegaWorld, highlighting the innovative potential of this collaboration [5] Group 2 - The partnership is expected to bring new levels of efficiency and innovation to technology modernization projects, addressing the challenges of legacy discovery [5] - The collaboration is seen as a response to the urgent need for enterprises to modernize their systems and unlock trapped value [4][5] - The initiative is part of a broader trend where enterprises are increasingly adopting adaptive, AI-native systems for improved customer experience and growth [4]

Core Points - Pegasystems Inc. will replace Nordstrom Inc. in the S&P MidCap 400 effective May 22, 2025 [1] - The acquisition of Nordstrom by the Nordstrom family and El Puerto de Liverpool S.A.B. de C.V. is expected to be completed on May 20, 2025 [1] Summary by Category Index Changes - Pegasystems (PEGA) will be added to the S&P MidCap 400 [1] - Nordstrom (JWN) will be removed from the S&P MidCap 400 [1] Company Information - Pegasystems operates in the Information Technology sector [1] - Nordstrom operates in the Consumer Discretionary sector [1]

Pegasystems (PEGA) FY Conference Summary Company Overview - **Company**: Pegasystems (PEGA) - **Industry**: Software, specifically AI-driven decisioning and workflow automation - **Founding Year**: 1983 - **Key Executives**: Alan Troughler (Founder and CEO), Ken Stilwell (CEO and CFO) [3][5] Core Points and Arguments Business Model Transition - Transitioned to a subscription-based business model and focused on cloud services, aiming to be a "Rule of 40" company [5] - Introduction of **Blueprint**, a tool designed to streamline application development and expand the addressable market [5][7] Blueprint Tool - **Blueprint** compresses the application development lifecycle, allowing for faster client engagement and project initiation [9][10] - It enables users to input business goals and existing documentation, significantly reducing the time from weeks to mere hours for conceptualization [9][10] - Blueprint is positioned to engage users unfamiliar with Pega's offerings, facilitating new client acquisition [10] AI Differentiation - Pega's approach to AI emphasizes pre-design reasoning and workflow mapping, contrasting with competitors that rely on runtime reasoning [14][15] - The use of **Large Language Models (LLMs)** is integrated into Blueprint to enhance workflow design and predictability, minimizing risks associated with AI hallucinations [15][16][17] Legacy Transformation - Blueprint is being utilized for legacy transformation projects, allowing clients to upload existing system documentation to create new workflows and cloud-native databases [28][29] - The slow pace of digital transformation in the industry presents a significant opportunity for Pega to accelerate client projects [30][34] Customer Engagement and Market Dynamics - High engagement levels with customers, with a focus on efficiency and cost-saving measures, particularly in uncertain economic conditions [58][61] - Pega's sales strategy has shifted to emphasize Pega Cloud and Blueprint, with a notable increase in deals involving Blueprint [45][50] Financial Performance - Q1 results showed strong performance with $61 million in ACV growth, exceeding initial expectations [70] - The company anticipates a more traditional seasonal sales pattern, with Q4 expected to be stronger than Q2 and Q3 [72] Cash Flow and Growth Potential - Pega has achieved a free cash flow level around 30%, with plans to expand selling capacity while increasing growth rates and margins [74] Other Important Insights - The introduction of **adaptive subscription** models allows clients to engage with Pega flexibly, reducing contractual hurdles [52][53] - The company has a high single-digit exposure to the US federal market, indicating a stable client base [67] - The executives expressed confidence in navigating macroeconomic uncertainties, leveraging Pega's cloud solutions to reassure clients [58][60] This summary encapsulates the key points discussed during the Pegasystems FY Conference, highlighting the company's strategic initiatives, market positioning, and financial outlook.

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Pegasystems (PEGA) currently holding a Momentum Style Score of B [2][3] Group 2: Performance Metrics - PEGA shares have increased by 0.99% over the past week, outperforming the Zacks Computer - Software industry, which rose by 0.14% [5] - Over the past quarter, PEGA shares have risen by 13.24%, and over the last year, they have gained 54.97%, while the S&P 500 has moved -3.09% and 13.39%, respectively [6] Group 3: Trading Volume and Earnings Outlook - The average 20-day trading volume for PEGA is 1,012,420 shares, indicating a bullish sign if the stock is rising with above-average volume [7] - In the past two months, four earnings estimates for PEGA have increased, raising the consensus estimate from $3.10 to $3.26 [9] Group 4: Conclusion - Given the positive performance metrics and earnings outlook, PEGA is rated as a 2 (Buy) stock with a Momentum Score of B, making it a potential pick for near-term gains [11]

Core Viewpoint - Pegasystems has demonstrated strong performance in Q1 2025, with significant growth in sales and adjusted earnings, driven by its GenAI product and cloud migration strategy [1][2][3]. Financial Performance - In Q1 2025, Pegasystems reported sales of nearly $476 million, exceeding expectations by $119 million [2]. - Adjusted earnings per share (EPS) were $1.53, beating estimates by $0.50 [2]. - Free cash flow reached a record of $202 million [2]. Annual Contract Value (ACV) Growth - The company's ACV increased by 13% in the quarter, which is considered its most important business indicator [3]. - Pega Cloud's ACV grew by 23%, significantly outpacing the growth of its client-managed offering, Client Cloud [3]. - Pega Cloud currently accounts for approximately 48% of total ACV, indicating potential for margin growth as more clients transition to this higher-margin service [3]. Product Innovation: GenAI Blueprint - Pega GenAI Blueprint is designed to enhance legacy workflows and create AI-centric applications, automating previously manual processes [4][5]. - The product is gaining traction, with over 1,000 new blueprints created weekly, doubling engagement from the previous month [6]. - GenAI Blueprint is seen as a key driver of strong ACV growth and is influencing customer relationships positively [7]. Market Potential and Stock Forecast - The market opportunity for GenAI Blueprint is substantial, with Pegasystems valued at under $8 billion as of April 28 [8]. - Analysts project a 12-month stock price forecast of $100.27, indicating a potential upside of 10% from the current price of $91.16 [7]. - Updated price targets suggest an average upside of approximately 17% over the next 12 months [9].