Will the Operational Shift Impact EPAM Systems (EPAM)? - InvestingChannel

Will the Operational Shift Impact EPAM Systems (EPAM)?

Broyhill Asset Management, an investment advisor, released a third-quarter 2024, investor letter. A copy of the letter can be downloaded here. Broyhill Partners appreciated 6% net of all fees and expenses in the third quarter. The top contributors in the quarter were Philip Morris, Fiserv, Avantor, and Baxter. There was only one material detractor: Dollar General. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Broyhill Asset Management highlighted stocks like EPAM Systems, Inc. (NYSE:EPAM), in the third quarter 2024 investor letter. EPAM Systems, Inc. (NYSE:EPAM) is a digital platform engineering and software development services provider. The one-month return of EPAM Systems, Inc. (NYSE:EPAM) was 18.66%, and its shares lost 7.08% of their value over the last 52 weeks. On December 3, 2024, EPAM Systems, Inc. (NYSE:EPAM) stock closed at $240.51 per share with a market capitalization of $13.642 billion.

Broyhill Asset Management stated the following regarding EPAM Systems, Inc. (NYSE:EPAM) in its Q3 2024 investor letter:

“EPAM Systems, Inc. (NYSE:EPAM). EPAM has long been a best-in-class operator within IT services and one we were happy to add to the portfolio with the noise created by the sell-off from the war in Ukraine. However, as the conflict has dragged on, EPAM has increasingly shifted operations to India and Latin America. We suspect that a shifting labor force could undercut its advantages and introduces a new type of uncertainty that we are less eager to underwrite. We exited the position in September.”

A close-up of a coder at a computer, coding away to bring the latest software service to life.

EPAM Systems, Inc. (NYSE:EPAM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held EPAM Systems, Inc. (NYSE:EPAM) at the end of the third quarter which was 37 in the previous quarter. EPAM Systems, Inc. (NYSE:EPAM) generated revenue of $1.168 billion in the third quarter, a year-over-year increase of 1.3% on a reported basis. While we acknowledge the potential of EPAM Systems, Inc. (NYSE:EPAM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed EPAM Systems, Inc. (NYSE:EPAM) and shared the list of high growth IT stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

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