According to Investors Business Daily, the crisis in the Ukraine is not hurting EPAM systems:

Ukraine Crisis Not Hurting Epam Systems
01/30/2015 05:37 PM ET

The stock of Epam Systems (NYSE:EPAM) climbed back sharply above the 50-day moving average Friday, a positive step as it shapes a new base.

The stock is forming a flat base with a potential buy point at 52.99. The new base is part of a base-on-base formation that’s been taking shape for nearly a year.

Much of the latest base has formed below the 50-day moving average, which is a drawback.

Epam is based in Newtown, Pa., but for all intents and purposes is a foreign company. Epam provides outsourcing services for the information technology industry with an army of more than 11,000 IT professionals and operations in North America, Europe, China and Australia.

That includes the Commonwealth of Independent States and, yes, Ukraine, the center of an armed struggle between the pro-Western government and pro-Russian rebels.

Analysts aren’t necessarily worried.

In December, Jefferies lauded the company’s potential to tap Western European businesses, which are embracing more IT services offshoring. Jefferies also said Epam is well positioned to capitalize on favorable trends in the financial, health care and retail sectors.

In a filing with the U.S. Securities and Exchange Commission, Epam said sanctions against Russia have restricted some business activities. But it added, “We believe these sanctions do not prevent us from providing our services to our customers.”

Epam is a leader in IBD’s technology services industry group. For the most recently reported quarter, it had the highest sales growth among the 44 companies in the group. Sales growth accelerated in the most recent quarters, too.

Epam’s EPS increase of 40% for the third quarter was fifth highest of the group, including some thinly traded stocks that did better. The growth rate for earnings also has been in an improving trend for about two years.

1 Like

Ukraine Crisis Not Hurting Epam Systems

Very interesting post, Jim, thanks.

Most of their operation centres are several 100kms from the fighting zone. EPAM IMO has bigger fish to fry. It wants to enter the big boys club, get bigger prestigious contracts. If they continue executing, this can be a big winner.

My 2 cents.