News Image

Why NASDAQ:PEGA Is a Promising High-Growth Stock in the Midst of Consolidation.

By Mill Chart

Last update: Apr 9, 2024

In this article we will dive into PEGASYSTEMS INC (NASDAQ:PEGA) as a possible candidate for growth investing. Investors should always do their own research, but we noticed PEGASYSTEMS INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

A Closer Look at Growth for NASDAQ:PEGA

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:PEGA, the assigned 8 reflects its growth potential:

  • PEGA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 255.07%, which is quite impressive.
  • The Earnings Per Share has been growing by 30.80% on average over the past years. This is a very strong growth
  • The Revenue has grown by 8.71% in the past year. This is quite good.
  • The Revenue has been growing by 9.95% on average over the past years. This is quite good.
  • PEGA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.56% yearly.
  • Based on estimates for the next years, PEGA will show a quite strong growth in Revenue. The Revenue will grow by 12.56% on average per year.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

A Closer Look at Health for NASDAQ:PEGA

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:PEGA has earned a 5 out of 10:

  • An Altman-Z score of 4.22 indicates that PEGA is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.22, PEGA is in the better half of the industry, outperforming 63.18% of the companies in the same industry.
  • The Debt to FCF ratio of PEGA is 2.48, which is a good value as it means it would take PEGA, 2.48 years of fcf income to pay off all of its debts.
  • PEGA has a better Debt to FCF ratio (2.48) than 70.40% of its industry peers.
  • Although PEGA does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

What does the Profitability looks like for NASDAQ:PEGA

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:PEGA has achieved a 6:

  • PEGA's Return On Assets of 4.49% is fine compared to the rest of the industry. PEGA outperforms 79.78% of its industry peers.
  • PEGA's Return On Equity of 19.15% is amongst the best of the industry. PEGA outperforms 90.61% of its industry peers.
  • The Return On Invested Capital of PEGA (7.81%) is better than 85.20% of its industry peers.
  • PEGA has a Profit Margin of 4.73%. This is in the better half of the industry: PEGA outperforms 76.90% of its industry peers.
  • In the last couple of years the Profit Margin of PEGA has grown nicely.
  • PEGA has a Operating Margin of 7.17%. This is in the better half of the industry: PEGA outperforms 78.34% of its industry peers.
  • PEGA has a Gross Margin of 73.58%. This is in the better half of the industry: PEGA outperforms 65.34% of its industry peers.
  • PEGA's Gross Margin has improved in the last couple of years.

How do we evaluate the setup for NASDAQ:PEGA?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:PEGA currently has a 8 as setup rating:

PEGA has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. We notice that large players showed an interest for PEGA in the last couple of days, which is a good sign.

More Strong Growth stocks can be found in our Strong Growth screener.

Check the latest full fundamental report of PEGA for a complete fundamental analysis.

Check the latest full technical report of PEGA for a complete technical analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

Back

PEGASYSTEMS INC

NASDAQ:PEGA (5/29/2024, 7:23:12 PM)

After market: 59.42 0 (0%)

59.42

+0.58 (+0.99%)

PEGA News

News Image2 days ago - Pegasystems Inc.Pega to Hold Investor Session at PegaWorld iNspire 2024
News Image17 days ago - Pegasystems Inc.Pega Extends Relationship with HMRC Through Customer Engagement Enterprise Agreement
News Image21 days ago - InvestorPlaceFuturistic Fortunes: 3 AI Stocks Set to Dominate the Market by 2027

Discover why these AI stocks are set to dominate the market. Explore the fundamentals behind their AI-driven lead.

News Image24 days ago - Pegasystems Inc.Pega to Present at Upcoming Investor Conference
News Imagea month ago - USA News GroupGenerative AI Surge Triggers Nationwide Rush for New Data Center Infrastructure

/PRNewswire/ -- USA News Group News Commentary – Demand for new AI Data Centers which are powering the rise of such popular AI platforms as OpenAI's ChatGPT is...

News Imagea month ago - InvestorPlacePEGA Stock Earnings: Pegasystems Beats EPS, Misses Revenue for Q1 2024

PEGA stock results show that Pegasystems beat analyst estimates for earnings per share but missed on revenue for the first quarter of 2024.

News Imagea month ago - BusinessInsiderPEGA Stock Earnings: Pegasystems Beats EPS, Misses Revenue for Q1 2024

InvestorPlace - Stock Market News, Stock Advice & Trading Tips Pegasystems (NASDAQ:PEGA) just reported results for the first quarter of 2024.P...

News Imagea month ago - Pegasystems Inc.Pega Delivers Outstanding Cash Flow and Margin Expansion in Q1 2024
News Imagea month ago - Pegasystems Inc.Pega Introduces Pega GenAI Coach to Intelligently Guide Users to do Their Best Possible Work
News Imagea month ago - Pegasystems Inc.Pega Infinity ‘24 Helps Enterprises Harness Powerful GenAI Solutions to Achieve Self-Optimization
News Image2 months ago - Pegasystems Inc.Pega to Announce Financial Results for the First Quarter of 2024 and Host Conference Call and Webcast
News Image2 months ago - InvestorPlace3 Strong Buy IoT Stocks to Add to Your Q2 Must-Watch List

Unlock the potential of strong buy IoT stocks in a market set to soar to $650.5 billion by 2026, fueled by the ongoing digital evolution

PEGA Links
Follow us for more