PEGASYSTEMS INC (NASDAQ:PEGA) – A Strong Contender for CANSLIM Investors

PEGASYSTEMS INC (NASDAQ:PEGA) was identified by our CANSLIM stock screener as a potential candidate for growth-focused investors. The company’s strong earnings momentum, high relative strength, and solid fundamentals align well with the CANSLIM investment strategy. Below, we examine why PEGA stands out.

Key CANSLIM Criteria Met by PEGA

• Earnings Growth (C & A Criteria):

  • Quarterly EPS growth (Q2Q) of 218.75%, far exceeding the CANSLIM minimum of 20%.
  • Revenue growth (Q2Q) of 44.07%, well above the 25% threshold.
  • Three-year EPS growth of 184.70%, showcasing consistent profitability expansion.

• Strong Fundamentals (A & L Criteria):

  • Return on Equity (ROE) of 32.18%, indicating efficient use of shareholder capital.
  • Zero debt (Debt/Equity of 0.0), reinforcing financial stability.

• Market Leadership (L & I Criteria):

  • Relative Strength of 95.32, meaning PEGA outperforms 95% of the market.
  • Institutional ownership at 48.11%, leaving room for further institutional interest.

• Technical Strength (M Criteria):

  • Both short-term and long-term trends are positive, with the stock trading near its 52-week high.
  • The S&P 500’s bullish trend supports a favorable market environment for growth stocks.

High-Level Analysis

• Fundamental Health: PEGA scores well on profitability and solvency, with strong margins and no debt. However, its valuation appears slightly stretched with a P/E of 25.15.
• Technical Outlook: The stock is in a clear uptrend, with high relative strength and solid volume support.

For a deeper look, review the full fundamental analysis and technical report.

Our CANSLIM High Growth screener lists more stocks meeting these criteria and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own analysis before making investment decisions.