CTSH:NASDAQCognizant Technology Solutions Corporation Analysis
Data as of 2026-02-22 - not real-time
$65.03
Latest Price
4/10Risk
Risk Level: Medium
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 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 yearsPositive
Model confidence: 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 yearsPositive
Model confidence: 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
Similar Tickers
This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.