Petr Huřťák
3 min read
A number of stocks jumped in the afternoon session after Iran announced the reopening of the Strait of Hormuz, easing international tensions and providing a much-needed boost to corporate IT spending outlooks.
Many IT service providers rely on long-term contracts that are sensitive to the global macroeconomic climate. With the threat of a prolonged Middle East conflict receding, enterprise clients are more likely to commit to multi-year digital transformation projects and cloud migration initiatives.
The sector also benefits from improved labor mobility and reduced operational costs as global travel becomes less risky for specialized consultants. As inflation expectations moderate alongside oil prices, IT firms can more accurately forecast their wage and overhead expenses. This clarity is driving investor interest back into the sector as a reliable play on global productivity growth.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
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IT Services & Consulting company EPAM (NYSE:EPAM) jumped 3.9%. Is now the time to buy EPAM? Access our full analysis report here, it’s free.
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Traditional Media & Publishing company Sinclair (NASDAQ:SBGI) jumped 3.9%. Is now the time to buy Sinclair? Access our full analysis report here, it’s free.
EPAM’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock gained 8% on the news that the company announced a new stock repurchase program of up to $1 billion.
The company’s Board of Directors authorized the program, which will have a term of 24 months. Stock buybacks are often viewed positively by investors because they reduce the number of shares outstanding, which can increase earnings per share. This move signaled management’s confidence in the company’s financial health and future prospects.
The company’s CFO, Jason Peterson, added that they “remain confident in the underlying strength of our business reflected by three quarters of improving year-over-year organic constant currency revenue growth.” The repurchases may occur through open market or private transactions.
EPAM is down 34.4% since the beginning of the year, and at $131.45 per share, it is trading 40.6% below its 52-week high of $221.40 from January 2026. Investors who bought $1,000 worth of EPAM’s shares 5 years ago would now be looking at only $294.10.
