PEGASYSTEMS INC (NASDAQ:PEGA) – A Strong Contender in High-Growth Momentum and Minervini’s Trend Template

PEGASYSTEMS INC (NASDAQ:PEGA) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template criteria. The company, which specializes in AI-powered workflow automation and enterprise software, demonstrates strong technical and fundamental characteristics that make it an interesting candidate for growth-focused investors.

Why PEGA Fits the Minervini Trend Template

Minervini’s strategy focuses on stocks exhibiting strong uptrends, supported by key technical criteria. PEGA meets these requirements:

• Price Above Key Moving Averages: The stock is trading above its 50-day ($49.19), 150-day ($45.40), and 200-day ($43.72) moving averages, confirming a bullish trend.
• Upward-Sloping Moving Averages: The 150-day and 200-day MAs are both trending upward, reinforcing long-term strength.
• Relative Strength: With a ChartMill Relative Strength (CRS) score of 95.04, PEGA outperforms 95% of all stocks, a key trait of market leaders.
• Price Performance: PEGA is currently within 5% of its 52-week high ($56.84), indicating strong momentum.

High-Growth Fundamentals

Beyond technical strength, PEGA exhibits robust growth metrics:

• Earnings Growth: EPS surged 218.75% year-over-year in the latest quarter, with a trailing twelve-month (TTM) growth of 50%.
• Revenue Growth: Quarterly sales grew 44.07% YoY, while TTM revenue increased by 14.29%.
• Profitability: The company’s profit margin improved to 17.96% in the latest quarter, up from 1.88% a year ago.
• Analyst Upgrades: EPS estimates for next year have been revised upward by 23.80% over the past three months, signaling strong future expectations.

Technical Outlook

According to ChartMill’s technical report, PEGA has a perfect Technical Rating of 10, reflecting its strong trend across short and long-term timeframes. However, the Setup Rating of 5 suggests that while the stock is technically sound, it may need a consolidation phase before presenting an optimal entry point.

Key support levels are found between $50.72–$52.06, while resistance sits near $54.15. Given its high relative strength and upward momentum, PEGA remains a stock to watch for potential breakouts.

For a deeper technical breakdown, review the full technical analysis report.

Our High Growth Momentum + Trend Template screener lists more stocks meeting these criteria and is updated daily.

Disclaimer

This is not investment advice. The observations here are based on current data, but investors should conduct their own research before making decisions.