Texas Pacific Land and Corning are February's top S&P 500 stocks, while EPAM Systems and CoStar Group bring up the rear. ...

EPAM Systems, Inc. (NYSE:EPAM) is among the 10 Best Magic Formula Stocks for 2026. Morgan Stanley on February 20 cut its price target on the stock to $160 from $175, while maintaining an Equal Weight rating. Morgan Stanley Trims Price Target on EPAM Systems, Inc. (EPAM) to $160, Keeps Equal Weight Rating The adjustment followed the company’s fourth-quarter earnings call a day earlier, during which it forecast Q1 2026 earnings in line with Wall Street’s estimates but appeared conservative to investors and ...

Core Viewpoint - TD Cowen analyst Bryan Bergin has lowered the price target for Epam Systems (EPAM) to $220 from $243 while maintaining a Buy rating on the shares, indicating a cautious outlook due to client headwinds affecting 2026 growth guidance, but still sees potential for recovery supported by strong fundamentals [1] Group 1: Price Target and Rating - The price target for Epam Systems has been reduced to $220 from $243 [1] - The firm maintains a Buy rating on Epam Systems shares [1] Group 2: Growth Guidance and Challenges - 2026 growth guidance is impacted by a discrete client headwind [1] Group 3: Underlying Fundamentals - AI-driven demand is a positive factor for the company's outlook [1] - Pricing improvement and margin expansion are contributing to a constructive recovery outlook [1] - The company has a strong balance sheet which provides optionality for future growth [1]

Headquartered in Newtown, Pennsylvania, EPAM Systems, Inc. (EPAM) engineers digital platforms and delivers software development services. With a market cap of around $7.7 billion, the company drives cloud transformation, artificial intelligence (AI) and data initiatives, cybersecurity, and experience design. EPAM also leads product development, system modernization, testing, deployment, and ongoing operational support. Over the past 52 weeks, EPAM stock slid 38.3%, while the S&P 500 Index ($SPX) surged r ...

Core Viewpoint - The software sector is experiencing a significant downturn, with stocks facing existential threats from AI, leading to a debate on whether the selloff is justified or an overreaction [1][2]. Group 1: Software Sector Performance - Global software stocks have seen declines between 15% and 35% over the past 30 days, with Accenture and EPAM Systems losing 25% and 35% respectively [2]. - The Nifty IT index has also dropped by 16% during the same period, indicating a broader trend in the software sector [2]. - The iShares Expanded Tech-Software Sector ETF (IGV), which includes major firms like Microsoft and Oracle, has seen its performance ratio against the Nasdaq Composite index fall back to 100, erasing previous gains since the 2002 tech bull market [3][4]. Group 2: Drawdown Analysis - The current drawdown of 37% for software stocks is the worst in the post-dotcom period, surpassing previous drawdowns including those in 2022 [6]. - The standalone drawdown for IGV is over 30%, second only to a 50% drop in 2009 and a nearly 45% drop in 2022 [8]. - When comparing IGV to the S&P 500, the current ratio is worse than the trough formed in 2022, indicating significant underperformance [10]. Group 3: Semiconductor Sector Performance - In contrast to the software sector, the semiconductor sector is thriving, with companies like Nvidia and Micron benefiting from the AI boom [12]. - The iShares Semiconductor ETF (SOXX) has reached an all-time high in the post-dotcom period, reflecting strong performance compared to the Nasdaq Composite [13]. - The relative performance of SOXX against IGV has dramatically improved, with the ratio skyrocketing to 200 over the last 10 months [14]. Group 4: Valuation Considerations - Valuations for major chip stocks, except Nvidia and AMD, are above their five-year average multiples, while software stocks are trading below their five-year averages [18]. - In the Indian context, the Nifty IT index is trading at valuations higher than pre-Covid levels, despite corrections due to lack of earnings growth and AI disruption [21]. - Some mid-cap software companies are trading at high multiples that do not justify their earnings growth rates, raising concerns about sustainability [23].

Shares of technology consulting firm EPAM Systems (NYSE: EPAM) fell 16.4% this week through Thursday trading, according to data from S&P Global Market Intelligence. EPAM reported earnings on Thursday morning and sold off, even though the company beat expectations on both the top and bottom lines. However, investors appeared less enthusiastic about the company's 2026 forward guidance. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an ...

Core Insights - Vanguard Industrials ETF (VIS) provides concentrated exposure to the industrial sector with 97.4% of its assets allocated to over 500 holdings, including major companies like GE, RTX, and Caterpillar [1] - The ETF has achieved a year-to-date gain of 12.51%, closely mirroring the performance of its main competitor, the Industrial Select Sector SPDR Fund [1] - Manufacturing value-added reached $2.95 trillion in Q3 2025, showing a growth acceleration of 3.2% after a period of cyclical weakness [1] ETF's Intended Portfolio Role - VIS serves as a precise tool for sector allocation, focusing solely on industrials and eliminating exposure to other sectors, which allows investors to capitalize on cyclical recovery themes [1] - The fund's holdings include key subsectors such as aerospace and heavy equipment, providing diversification within the industrial theme [1] - With a dividend yield of only 1.02%, VIS is positioned as a growth-focused investment rather than an income-generating vehicle [1] Performance and Returns - VIS has successfully captured the industrial sector's cyclical upswing, benefiting from its exposure to leading companies in aerospace and heavy equipment [1] - The ETF's low fees enhance its attractiveness, allowing investors to fully benefit from the industrial recovery without incurring high expenses [1] Tradeoffs and Considerations - The cyclical nature of the industrial sector introduces significant risk, as evidenced by the year-to-date gains occurring alongside rising jobless claims and a contraction in manufacturing [1] - The lack of defensive exposure means that during economic downturns, VIS offers no protective buffer against losses [1] - Active monitoring of economic indicators and cycle positioning is essential for investors, as the industrial sector can experience rapid shifts in performance [1]

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page.Considering buying SO stock? Here’s what analysts think: Photo via Shutterstock ...

Economic Indicators - The number of Americans filing for initial jobless claims fell by 23,000 to 206,000, compared to the expected 223,000 [1] - The U.S. Philly Fed manufacturing index rose to a 5-month high of 16.3 in February, exceeding expectations of 7.5 [1] - The U.S. December trade deficit widened to $70.3 billion, worse than the expected $55.5 billion [1] - U.S. pending home sales unexpectedly fell by 0.8% month-over-month in January, contrary to expectations of a 1.4% increase [1] Stock Market Performance - Wall Street's major indexes ended in the red, with EPAM Systems dropping over 17% after issuing soft FY26 revenue growth guidance [2] - Chip stocks, including Microchip Technology and Texas Instruments, slid more than 2% [2] - Booking Holdings slumped over 6% after posting weaker-than-expected Q4 EPS [2] - Omnicom Group jumped over 15% after reporting better-than-expected Q4 revenue [2] Federal Reserve Insights - Minneapolis Fed President Neel Kashkari indicated that interest rates are likely near "neutral" [5] - San Francisco Fed President Mary Daly stated that monetary policy is "in a good place" [5] - U.S. rate futures show a 94% probability of no rate change and a 6% chance of a 25 basis point rate cut at the next central bank meeting in March [5] European Market Developments - The Euro Stoxx 50 Index rose by 0.47% due to stronger-than-expected PMI data from the region [8] - Luxury stocks outperformed, with Moncler Spa jumping over 12% after reporting better-than-expected Q4 revenue [8] - Eurozone business activity grew faster than expected in February, driven by a rebound in manufacturing [8] Corporate Earnings and Forecasts - Siegfried Holding AG slumped over 8% after posting weaker-than-expected annual revenue [9] - Opendoor Technologies jumped over 18% in pre-market trading after better-than-expected Q4 revenue [14] - Akamai Technologies plunged over 10% after issuing below-consensus Q1 and FY26 adjusted EPS guidance [15]

Economic Indicators - The February Philadelphia business outlook survey unexpectedly rose by 3.7 to a 5-month high of 16.3, surpassing expectations of a decline to 7.5 [1] - Weekly initial unemployment claims fell by 23,000 to a 5-week low of 206,000, indicating a stronger labor market than the anticipated 225,000 [1][3] - The December trade deficit widened more than expected to $70.3 billion, the largest deficit in 5 months, compared to expectations of $55.5 billion [6] Stock Market Performance - Stock indexes closed lower on Thursday, with the S&P 500 down by 0.28%, the Dow Jones down by 0.54%, and the Nasdaq down by 0.41% [6] - Chipmakers and AI-infrastructure stocks faced significant pressure, contributing to the broader market decline [5][14] - Avis Budget Group's stock fell more than 22% after forecasting full-year adjusted EBITDA of $800 million to $1.00 billion, below the consensus of $1.07 billion [15] Corporate Earnings - Over three-quarters of S&P 500 companies have reported earnings, with 74% beating expectations, and S&P earnings growth is expected to rise by 8.4% in Q4 [9] - Booking Holdings reported Q4 adjusted EPS of $48.80, below the consensus of $48.86, leading to a decline of more than 6% in its stock [17] - Deere & Co raised its full-year net income forecast to between $4.5 billion and $5.0 billion, up from a previous forecast of $4.00 billion to $4.75 billion, resulting in a stock increase of more than 11% [18] Geopolitical Factors - Geopolitical risks impacted stocks, with WTI crude oil rising more than 1% to a 6.5-month high due to concerns over Iran's nuclear negotiations amid U.S. military buildup in the Middle East [4]