Why EPAM Is One of the Best Stocks to Buy Today for Growth Investors

Finding quality stocks to buy today that genuinely deliver above-average returns remains challenging for growth-focused investors. The core issue lies in distinguishing between authentic growth opportunities and those where the expansion narrative has peaked or is fading. While growth stocks typically offer compelling upside potential, they also come with elevated volatility and risk levels that require careful evaluation.

The Zacks Growth Style Score provides a sophisticated framework for identifying real growth candidates that look beyond surface-level metrics. EPAM Systems ranks among the current recommendations from this proprietary analysis system, combining a solid Growth Score with favorable fundamental indicators that suggest meaningful upside potential. Research demonstrates that when a stock pairs a Growth Score of A or B with a Zacks Rank of #1 or #2, the performance consistency against market benchmarks improves significantly.

Understanding the Growth Metrics Behind EPAM’s Appeal

For expansion-focused portfolios, few factors matter more than earnings trajectory. Investors typically seek double-digit percentage growth in earnings per share, viewing this threshold as a signal of robust business momentum and stock appreciation potential. While EPAM has demonstrated a historical EPS expansion rate of 6.5%, the forward outlook tells a more compelling story. The company’s projected EPS growth of 10.1% substantially outpaces the sector median of 8.2%, positioning it as a faster-growing competitor within its peer group.

This earnings acceleration reflects EPAM’s ability to expand profitability while managing its operational footprint efficiently—a combination that often translates to attractive returns for equity investors.

Operational Efficiency: How EPAM Outpaces Peers

Many investors overlook the sales-to-total-assets ratio when evaluating growth potential, yet this metric offers valuable insight into capital deployment. The ratio reveals how effectively a business converts its resource base into revenue generation. EPAM’s current S/TA ratio of 1.11 indicates the company generates $1.11 in sales for each dollar of assets under its control. When benchmarked against the sector average of 0.9, EPAM demonstrates superior capital efficiency—a meaningful competitive advantage.

Beyond this efficiency advantage, the company’s sales expansion rate also deserves attention. EPAM’s anticipated revenue growth of 6.9% surpasses the industry average of 6.0%, suggesting the organization combines both operational leverage and top-line momentum.

The Power of Rising Earnings Estimates

Analyst consensus revisions serve as a leading indicator for near-term stock performance. Academic research consistently shows a strong link between directional trends in earnings estimate changes and subsequent price movements. For EPAM, the consensus earnings forecasts have moved constructively higher—specifically, the current-year estimates have increased 0.2% over the most recent month, signaling analyst confidence in the company’s execution.

This upward estimate trajectory complements the fundamental strengths outlined above and reinforces the case for considering EPAM as a candidate for growth-oriented portfolios.

Taking Action on a Compelling Opportunity

The combination of improving earnings estimates with a Zacks Rank #2 status and a Growth Score of B creates a favorable setup for potential outperformance. For investors seeking stocks to buy today with genuine growth characteristics, EPAM warrants serious consideration. While no stock guarantees returns, this particular opportunity presents the kind of fundamental and analytical alignment that historically precedes meaningful price appreciation.