CTSH:NASDAQCognizant Technology Solutions Corporation Analysis
Data as of 2026-08-17 - not real-time
$58.79
Latest Price
7/10Risk
Risk Level: Medium
Executive Summary
The moving-average structure behind Cognizant Technology Solutions Corporation is neutral at $58.79, with no clear ordering between short and long averages. Across the trailing 30 sessions it gained 40.0%. Momentum indicators put RSI at 71.5 (overbought) with MACD reading bullish. Watch $42.12 as support and $60.09 as the nearer resistance level.
Multiples put this in undervalued territory: 12.6 times earnings against the sector's 36.5. Sell-side targets cluster 8.8% above the current quote. Revenue is growing at 4.5% on a 10.3% profit margin. The 2.24% dividend yield looks covered by current payout levels.
Risk scores 7 out of 10, which is elevated for this asset class. With 30-day volatility of 50.7%, a beta of 0.20 and a maximum drawdown of 55.3%, position sizing matters more than entry timing here. The wider market backdrop reads extreme greed at 96 on the fear-greed composite.
The horizons diverge: hold near-term but buy on a long view, at 4/10 conviction over the longer horizon.
Multiples put this in undervalued territory: 12.6 times earnings against the sector's 36.5. Sell-side targets cluster 8.8% above the current quote. Revenue is growing at 4.5% on a 10.3% profit margin. The 2.24% dividend yield looks covered by current payout levels.
Risk scores 7 out of 10, which is elevated for this asset class. With 30-day volatility of 50.7%, a beta of 0.20 and a maximum drawdown of 55.3%, position sizing matters more than entry timing here. The wider market backdrop reads extreme greed at 96 on the fear-greed composite.
The horizons diverge: hold near-term but buy on a long view, at 4/10 conviction over the longer horizon.
Top Market Events
12% year-over-year revenue growth in Financial Services; $1.Cognizant Technology Solutions Corporation NASDAQ:CTSH is one of the best beaten-down technology stocks to buy now.CTSH's Q2 results are likely to benefit from strong bookings, AI momentum and acquisition support, but macro...
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 2/10
Key Factors
- RSI at 71.5 signals overbought conditions
- Trading below the 200-day average of 63.56
- MACD momentum is positive
Medium Term
1–3 yearsNeutral
Model confidence: 3/10
Key Factors
- RSI at 71.5 signals overbought conditions
- P/E of 12.6 versus sector average of 36.5
- Trading below the 200-day average of 63.56
Long Term
> 3 yearsPositive
Model confidence: 4/10
Key Factors
- P/E of 12.6 versus sector average of 36.5
- Analyst targets imply +8.8% versus the current price
- 30-day volatility of 50.7%
Key Metrics & Analysis
Financial Health
Revenue Growth4.50%
Profit Margin10.26%
P/E Ratio12.6
ROE14.92%
ROA10.73%
Debt/Equity14.48
P/B Ratio1.8
Op. Cash Flow$2.9B
Free Cash Flow$2.2B
Industry P/E36.5
Technical Analysis
TrendNeutral
RSI71.5
Support$42.12
Resistance$60.09
MA 20$52.87
MA 50$48.34
MA 200$63.56
MACDBullish
VolumeStable
Fear & Greed Index95.98
Valuation
Fair Value$71.11
Target Price$63.94
Upside/Downside8.76%
GradeUndervalued
TypeBlend
Dividend Yield2.24%
Risk Assessment
Beta0.20
Volatility50.74%
Sector RiskHigh
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskLow
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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.