12 Oversold Value Stocks to Buy According to Hedge Funds

2. EPAM Systems, Inc. (NYSE:EPAM)

Number of Hedge Fund Holders: 56

​EPAM Systems, Inc. (NYSE:EPAM) is a global provider of digital engineering, software development, and consulting services. The company offers end-to-end solutions that include product design, custom software development, platform engineering, cloud services, and digital transformation strategy. EPAM serves clients across various industries such as financial services, healthcare, retail, media, and technology. It leverages a distributed global delivery model, combining deep domain expertise with agile methodologies and engineering talent.

EPAM Systems, Inc. (NYSE:EPAM) delivered better-than-expected Q4 2024 results, with revenues reaching $1.25 billion, representing a 7.9% YoY increase on a reported basis. The company returned to organic revenue growth for the first time since Q1 2023, with organic constant currency growth of 1%. The performance was marked by improvements in client sentiments across all verticals and geographies, particularly around AI-related capabilities, with 75% of the top 100 clients now engaged in GenAI initiatives. Four out of six verticals grew on a YoY basis, with five showing sequential growth, notably in life science and healthcare, software and hi-tech, financial services, and emerging verticals. Geographically, Americas and APAC led growth year-over-year, while Europe showed organic sequential revenue growth.

Looking ahead to 2025, EPAM Systems, Inc. (NYSE:EPAM) expects revenue growth in the range of 10% to 14%, with an inorganic contribution of approximately 10%. However, the company anticipates some margin pressure due to necessary investments in critical skills, talent retention, GenAI development, and integration efforts of recent acquisitions. While maintaining a cautiously optimistic outlook, EPAM believes 2025 will be a transformative year, balancing cost sensitivity with increasing discretionary spending needs. The company has significantly strengthened its global delivery footprint through recent acquisitions of NEORIS and First Derivative, adding nearly 6,000 people across Latin America, Canada, Spain, the UK, and Ireland. With a forward P/E of 14.38, EPAM is one of the oversold stocks to buy according to hedge funds.