Pegasystems: Bullish After Receiving The All Clear Signal

Summary

  • Pegasystems' Q2 results show strong execution, with accelerating Cloud ACV growth and improving margins, supporting the company's successful subscription model transition.
  • Cloud ACV growth of 28% YoY and a 31% increase in backlog highlight robust future revenue visibility and a more predictable business model.
  • PEGA stock's valuation remains reasonable at 5.65x forward revenue, with above-average Rule of 40 metrics and room for multiple expansion if growth accelerates further.

Office Manager Showing Documents On Digital Tablet To Colleague

Tom Werner

Pegasystems Inc. (NASDAQ:PEGA) has been on a bit of a rollercoaster over the past few years, with many fearing that growth would never return. After going through a period of transitioning into a Subscription business, the stock has started to

This article was written by

Individual investor with hands-on experience in the equity markets. Largely focusing on Tech companies or major mispricings in the market.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About PEGA Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on PEGA

Related Stocks

SymbolLast Price% Chg
PEGA
--