Pegasystems: Attractive Buying Opportunity

Mar. 27, 2022 6:05 AM ETPegasystems Inc. (PEGA)5 Comments
Gary Alexander profile picture
Gary Alexander
25.4K Followers

Summary

  • Shares of Pegasystems look attractive after a 30% year-to-date decline.
  • Revenue growth missed expectations in Pegasystems' most recent quarter, but only because cloud subscriptions and backlog growth exceeded expectations.
  • Pegasystems, addressing two very large markets in CRM and BPM, covers a $110 billion long-term TAM.
  • The stock's current 4.5x forward revenue multiple is modest.
  • Looking for a helping hand in the market? Members of Daily Tech Download get exclusive ideas and guidance to navigate any climate. Learn More »

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As we continue to look ahead to a near-term rebound in the stock markets, the key task for investors will be to find declining stocks whose YTD losses have dislocated them from their fundamentals. Pegasystems (

PEGA stock price
Data by YCharts

Pegasystems 2022 guidance

Pegasystems guidance (Pegasystems Q4 earnings deck)

Pegasystems Q4 earnings results

Pegasystems Q4 results (Pegasystems Q4 earnings deck)

Pegasystems ACV trends

Pegasystems ACV trends (Pegasystems Q4 earnings deck)

Pegasystems Q4 earnings

Pegasystems earnings (Pegasystems Q4 earnings deck)

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This article was written by

Gary Alexander profile picture
25.4K Followers
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Disclosure: I/we have a beneficial long position in the shares of PEGA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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