10 Worst Performing IT Services Stocks to Buy According to Analysts

7. EPAM Systems Inc. (NYSE:EPAM)

YTD Returns: -15%

Potential Upside: 34%

Number of Hedge Fund Holders: 56

EPAM Systems Inc. (NYSE:EPAM) is engaged in digital engineering, cloud and artificial intelligence-enabled transformation services. It provides software development, outsourcing services, business consulting, enterprise relationship management, and content management solutions to a globally diverse client base in multiple industries.

EPAM Systems Inc. (NYSE:EPAM) shares have declined 15% YTD. The company’s guidance for FY 2025, given its Q4 2024 earnings results, was weaker with EPS of $10.45-$10.75 below consensus expectation of $11.32 due to increasing cost pressure which is not offset by increasing pricing. Management also highlighted headwinds in 2025 from broad macro risks, policy-specific uncertainty due to dynamic geopolitical environment, and certain challenges in some of its clients and talent markets. Investors responded negatively to the guide and the shares tanked around 19% in the two days next to the results announcement.

Management still sees a brighter outlook over the mid-term based on significant backlog of technical and data modernization, along with new AI-related demand. While guidance was subdued, JP Morgan analyst Puneet Jain remained positive on the stock. On February 21, he reiterated his Buy rating with a price target of $274. Mizuho Securities analyst Sean Kennedy also maintained his Buy rating with a price target of $267.