Pegasystems Inc. (PEGA)

Pegasystems stock forecast: buy or sell

Pegasystems stock outlook

  • Pegasystems closed yesterday at $100.16 after sliding a -1.11%.
  • The stock is configuring an uptrend pattern since mid-March, when it bottomed at $37.98. Up to date, shares made a 163.72% gain since the beginning of this rally
No ad for you

Important:
The viewpoints published in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this document does not have any knowledge of the specific circumstances of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are provided for learning purposes only

Pegasystems stock chart overview

Should I buy Pegasystems stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is PEGA stock a buy?

Currently, Pegasystems stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for PEGA in coming sessions, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

No ad for you

Should I sell Pegasystems stock?

When is it time to sell Pegasystems stock?. Just as when we have to buy shares, deciding when is appropiate to sell is not a fickle decision, and we must use our own trading style. Our trading system selects very simple setups to guide us on when is the best moment to sell a stock. Be aware that these setups should not be used for shorting PEGA stock

As a golden rule, you must never keep an investment that shows a higher than expected losses upon purchase. When to sell your stock always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell Pegasystems stock?

In the current situation of Pegasystems there is not any eligible sell setup, so Pegasystems stock holders with operations in green can keep their positions

No ad for you

Analysts' recommendations to buy or sell Pegasystems stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, just one brokerage rating was published for Pegasystems

No ad for you

Pegasystems ratings

Brokerage firmRating
Jun 29th, 2020
Goldman Sachs Group Neutral

Technical analysis

Pegasystems shares started an uptrend in mid-March, and grew an amazing 163.72%. The chart shows higher tops and bottoms, and along the way gave very few buying opportunities for those who wanted to enter. Latest low was on June 15, when price bounced at $89.29. Now, the price trades in a consolidation between its last top ($107.19) and its last bottom ($89.29)

SMAs overview

Moving averages are simple tools for traders to detect market direction. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

Supports and resistances

Market investors use supports and resistances to spot price points on a chart that may act as obstacles, containing the price of shares to move up or down. Supports are levels where the price tends to find support as it falls. Price is more likely to "rebound" this level rather than break through it. However, if the price breaks down this level, it is likely to continue descending until finding another support level. On the contrary, a resistance level is where the price tends to find opposition as it moves up. In the same manner, this means that the price is more likely to "bounce off" at this level, and if it finally ruptures this level, it will rise easily until it hits the next resistance

The current resistances are:

  • R1: $100.97 (0.81% above)
  • R2: $103.06 (2.9% above)
  • R3: $107.19 (7.02% above)
  • The current supports are:

  • S1: $89.29 (-10.85% below)
  • S2: $79.55 (-20.58% below)
  • S3: $79.00 (-21.13% below)
  • Bollinger bands

    This is an indicator that was introduced in the 1980s by John Bollinger. It is composed of 3 bands that are outlined superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price surpassed the upper band on July 2, the price has been corrected downwards by 4.94%

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that measures price fluctuations to reveal when the price of a share or financial asset is overbought or oversold. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by investors

    The RSI dropped below the overbought level of 70 in early June after just crossing to the overbough zone for 1 day (weak signal). The RSI reading yesterday was 57.35. Pegasystems stock moved up a 1.37% since that level was lost

    No ad for you

    Earnings and financials

    First-quarter shareholders event was hosted by Pegasystems in late April after releasing the financial report. Pegasystems reported 1st-quarter earnings of $0.05 per share on revenue of $265.6 million. The Wall St estimate was $0.01 per share on revenue of $256.0 million.

    Compared to the same quarter one year ago, EPS was $-0.12, so current EPS is a improvement of 141.67%. Looking at turnover, figures skyrocketed a 24.95% compared to $212.6M same quarter last year.

    Pegasystems is hosting the Q2 earnings call on early next August. Wall Street forecasts a per-share earnings of %s of $-0.23, compared to previous quarter that made $0.05. Earnings reporting day has an additional risk for stock investors as the information provided can gap up or down the price with exceptionally low liquidity and not respecting your buy or stop-loss orders. You can probably obtain more information about the earnings conference call and the financial reports on the Investor Relations section of its website: http://www.pega.com.

    No ad for you