Pegasystems Stock Rises 29% in 3 Months: Should You Hold or Fold?

Pegasystems PEGA shares have risen 28.6% in three months, significantly outperforming the Zacks Computer and Technology and the Zacks Internet - Software industry’s return of 8.1% and 2.9%, respectively.Over the same time frame, it also outperformed its industry peers, including Autodesk ADSK, ACI Worldwide ACIW and Manhattan Associates MANH. Shares of ADSK and ACIW have gained 11% and 6%, respectively, while MANH has lost 1.9% in the past three months.  This outperformance highlights Pegasystems’ robust artificial intelligence (AI) portfolio and strong platform that facilitates top companies in the world to achieve business-changing results through real-time optimization. The company’s enterprise AI decisions and workflow automation used by several clients to address their most urgent business issues, such as streamlining operations, automating services and personalizing engagement, are aiding its top-line growth.Additionally, the launch of Pegasystems' unique AI strategy, Pega GenAI Blueprint, demonstrating to customers how they can quicken their digital transformation and become fully autonomous businesses, are major positive.Pegasystems Inc. Price and Consensus Pegasystems Inc. price-consensus-chart | Pegasystems Inc. QuoteGrowing Adoption of GenAI Blueprint to Aid PEGA’s GrowthThe tremendous excitement surrounding PEGA’s AI offerings, particularly the Pega GenAI Blueprint, is radically altering how it interacts with potential customers.In a matter of seconds, the Pegasystems GenAI Blueprint designs the necessary components using generative AI. The tool uses Pega's decades of industry experience to create customized workflows based on best practices for almost any situation, including managing patient care, processing insurance claims and handling credit card chargebacks. This helps to optimize broken legacy processes by beginning each discussion with a workflow that is geared toward the electronic age.Almost all conversations with clients and prospects now include the blueprint. It has significantly altered the way the company interacts, markets and delivers its services while assisting in its efforts to gain a deeper understanding of clients' businesses.According to Pegasystems' third-quarter earnings, its Pega GenAI Blueprint has created more excitement and quicker adoption than any other offering in the company's history. Since going live in April this year, nearly 500 organizations have contributed to the creation of more than 30,000 blueprints.Pegasystems’ Robust AI Portfolio to Bolster GrowthPegasystems continuously works to improve and adapt its AI products to better serve its customers.Pegasystems unveiled the next generation of its industry-leading Pega Smart Dispute offering earlier this month. It includes new automation and generative AI features that help banks expedite the resolution of disputes and fraud claims for any kind of payment. The new Pega Smart Dispute Enterprise Edition gives banks the ability to use a single, robust and tried-and-true Pega solution to handle complex disputes and claims even more quickly across a larger range of payment types.Pegasystems revealed in November 2024 that Pega GenAI Blueprint, which speeds up the difficult process of updating legacy systems that hinder businesses, now offers new AI-driven legacy discovery capabilities. While lowering technical debt, IT teams can now quickly assess their current systems and rethink their workflows.The general release of Pega InfinityTM 24.2 was announced by Pegasystems in October 2024. In addition to improving customer experiences, PEGA's most recent release of its core line of cloud-ready products offers new generative AI features and improvements that help businesses increase employee productivity and innovate more quickly. Pega PlatformTM, Pega Customer Decision HubTM, Pega Customer ServiceTM and Pega Sales AutomationTM are among the industry-wide solutions that have been improved in Pega Infinity '24.2. These solutions assist businesses in leveraging AI to further accelerate digital transformation at the enterprise level.Conclusion: What Should You Do With PEGA Stock?Pegasystems' perseverance and potential for long-term growth are demonstrated by its technological advancements and growing efforts to differentiate itself in the market with the newest AI offerings.However, ongoing macroeconomic issues, such as the prolonged inflationary environment and persistently high interest rates, could impair its financial performance in the short term. Additionally, PEGA stock is not cheap at the moment, as suggested by the Zacks Value Style Score of D. PEGA carries a Zacks Rank #3 (Hold), implying that new investors should not accumulate the stock now and existing investors should keep holding the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Autodesk, Inc. (ADSK): Free Stock Analysis Report Manhattan Associates, Inc. (MANH): Free Stock Analysis Report ACI Worldwide, Inc. (ACIW): Free Stock Analysis Report Pegasystems Inc. 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