CTSH:NASDAQ
Cognizant Technology Solutions Corporation
Data as of 2026-02-22 - not real-time
$65.03
Latest Price
4/10Risk
Risk Level: Medium
Trading Recommendations
Short Term
< 1 yearhold
Conviction: 6/10
Key Factors
- Short-term momentum is bearish with the stock down over 14% YTD and trading well below its 50-day moving average.
- Concerns over AI's ripple effect on IT services multiple expansion are weighing heavily on sentiment despite recent earnings beats.
Medium Term
1–3 yearsbuy
Conviction: 7/10
Key Factors
- Valuation is highly compelling at a 14.3 P/E ratio, trading significantly below its intrinsic value and the broader IT sector average.
- A recent dividend increase to an annualized $1.32 (2% yield) provides steady income while waiting for multiple expansion.
Long Term
> 3 yearsbuy
Conviction: 8/10
Key Factors
- Strong balance sheet with a negligible 0.04 debt-to-equity ratio provides significant flexibility for acquisitions and stock buybacks.
- Ongoing integration of AI-powered digital engineering and deep client relationships support long-term recurring revenue growth.
Key Metrics & Analysis
Financial Health
Revenue Growth6.20%
Profit Margin10.60%
P/E Ratio14.3
ROE16.00%
ROA10.50%
Debt/Equity0.04
P/B Ratio2.5
Op. Cash Flow$2.2B
Free Cash Flow$2.0B
Industry P/E26.5
Technical Analysis
TrendBearish
RSI32.5
Support$63.80
Resistance$80.50
MA 20$70.20
MA 50$80.36
MA 200$75.50
MACDBearish
VolumeIncreasing
Fear & Greed Index35
Valuation
Fair Value$115.00
Target Price$88.50
Upside/Downside36.10%
GradeUndervalued
TypeValue
Dividend Yield2.03%
Risk Assessment
Beta0.95
Volatility5.00%
Sector RiskMedium
Reg. RiskLow
Geo RiskMedium
Currency RiskMedium
Liquidity RiskLow
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This analysis may contain inaccuracies. Not financial advice. Always do your own research before making any investment decisions.