Bull of the Day: Pegasystems (PEGA)

Pegasystems PEGA is recognized for its low-code platform which enables businesses to build and automate workflows, manage customer relationships, and make data-driven decisions using AI. The stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with EPS expectations melting higher across the board over recent months.Image Source: Zacks Investment ResearchThe company also resides in the Zacks Computer – Software industry, which is currently ranked in the top 15% of all Zacks industries. Let’s take a closer look at what’s been driving the positivity behind the stock.PEGA Benefits from AIPEGA shares got swept up in broader market volatility back in February but have since recovered in a big way, up 12% overall in 2025 and outperforming relative to the S&P 500. Quarterly results have been notably positive concerning headline expectations, with PEGA exceeding the Zacks Consensus EPS estimate by an average of 94% across its last four releases.Image Source: Zacks Investment ResearchConcerning the above-mentioned release, PEGA posted sales of $475 million, up a strong 44% from the year-ago period. Adjusted EPS totaled $0.76, more than tripling the $0.24 per share mark in the same period last year.The outsized growth was fueled by strong demand, with the company also seeing 13% year-over-year annual contract value (ACV) growth alongside a 21% move higher in its backlog. Further adding to the positive environment, free cash flow of $202 million reflected a quarterly record.PEGA’s cash-generating abilities have seen a nice boost over recent periods, as shown below. The amplified abilities provide many opportunities for the company, including paying down debt and reinvesting in the business, just for a few simple examples.Image Source: Zacks Investment ResearchInvestors will have to fork up a premium for shares given the company’s high-growth nature, with the current 28.2X forward 12-month earnings multiple reflecting a 25% premium relative to the S&P 500. Earnings are forecasted to grow 25% in its current fiscal year and an additional 5% in FY26, also sporting a Style Score of ‘A’ for Growth.Bottom LineInvestors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.Pegasystems PEGA is currently a Zack Rank #1 (Strong Buy). Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pegasystems Inc. (PEGA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks