We recently published a list of 12 Most Oversold Large Cap Stocks to Invest in Now. In this article, we are going to take a look at where EPAM Systems, Inc. (NYSE:EPAM) stands against other most oversold large cap stocks to invest in now.
Impact of Tariff Uncertainty on Wall Street and the Future of US Stocks
Wall Street is being impacted by the uncertainty surrounding the tariff news. The broader has dropped a lot since Trump took office on January 20, and investors are mostly worried about tariffs because they think they could hurt economic growth and cause inflation. Investors think trade policies can reduce consumer confidence and restrict businesses’ ability to invest capital, while Trump believes tariffs can boost national revenue, promote broad-based growth, and be used as a negotiation weapon with other nations.
According to Franklin Templeton, the Magnificent Seven’s supremacy in AI has allowed US stocks to generate significant returns over the last few years, with the broader market frequently hitting all-time highs. The outlook for the market as a whole is favorable, notwithstanding high valuations. Sales growth has been accelerating, innovation and investment are still happening at a rapid pace, and this year’s earnings are predicted to increase by double digits. Additionally, the administration of the US economy is more business-friendly. However, there are concerns, primarily associated with US trade policy and the anticipated effects of tariffs on important industries, such as technology.
Franklin Templeton thinks that despite these risks, investor confidence in US stocks should continue to be high. The new administration’s policy reforms are anticipated to finally produce long-term benefits for the larger US economy, notwithstanding the possibility of increased dangers.
Franklin Templeton also stated that although the Mag 7 stocks are positioned for long-term success, market leadership is anticipated to expand as and when innovation accelerates. According to the investment firm, active management is crucial. The transition from AI platforms to infrastructure is still in progress. Consequently, it is anticipated that the success of investments will depend on the ability to select the appropriate companies at the right time—those that have the technology, strategy, and flexibility to continue and sustain long-term growth.
Thanks to innovation and investment, US stocks—mostly large-cap stocks—have been doing well. Notably, the Dow index has increased by more than 4.5% in the last six months. The investment business sees expanding chances beyond such market leaders, even though the Mag 7 stocks still sustain the market momentum. The competitive landscape is still dynamic and has been generating new development sectors as a result of the ongoing AI-driven cycle.
Our Methodology
For our methodology, we screened for stocks with a market capitalization exceeding $10 billion and a relative strength index (RSI) below 40. We then ranked these stocks based on the lowest RSI as of March 23, 2025. An RSI below 40 suggests that the stock is oversold.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up of a coder at a computer, coding away to bring the latest software service to life.
EPAM Systems, Inc. (NYSE:EPAM)
Relative Strength Index: 25.99
EPAM Systems, Inc. (NYSE:EPAM) is a global provider of digital engineering, software development, and consulting services. The business provides comprehensive solutions that cover platform engineering, cloud services, digital transformation strategy, product design, and custom software development. Clients of the company come from a wide range of sectors, including technology, media, retail, healthcare, and financial services. Using a distributed global delivery approach, it combines engineering talent, agile methodology, and deep domain experience.
The Q4 2024 results of EPAM Systems, Inc. (NYSE:EPAM) were better than anticipated. The company’s reported revenues of $1.25 billion represented a 7.9% YoY growth. With an organic constant currency increase of 1%, the company had its first organic revenue growth since Q1 2023. With 75% of the top 100 clients now involved in GenAI efforts, the performance was characterized by gains in client sentiments across all sectors and countries, especially regarding AI-related skills. Five verticals showed sequential growth, particularly in the areas of financial services, software and hi-tech, life science and healthcare, and emerging verticals. Four of the six verticals grew on a year-over-year basis. Geographically, Europe demonstrated organic sequential sales growth, while the Americas and APAC led growth year over year.
With an anticipated 10% inorganic contribution, EPAM Systems, Inc. (NYSE:EPAM) anticipates sales growth of 10% to 14% by 2025. The business does, however, expect some margin pressure as a result of the required expenditures in personnel retention, critical skills, GenAI development, and recent acquisition integration. The business is cautiously enthusiastic about 2025, but it thinks it will be a transformative year that strikes a balance between cost sensitivity and growing demands for discretionary spending. Recent acquisitions of NEORIS and First Derivative have greatly expanded the company’s global delivery presence, adding around 6,000 employees across Latin America, Canada, Spain, the UK, and Ireland.
Overall, EPAM ranks 4th on our list of most oversold large cap stocks to invest in now. While we acknowledge the potential of EPAM, 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 more promising than EPAM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
