Is Cognizant Technology Stock a Good Investment?
Cognizant Technology Investment Advice | CTSH |
- Examine Cognizant Technology's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Cognizant Technology's leadership team and their track record. Good management can help Cognizant Technology navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the IT Consulting & Other Services space and any emerging trends that could impact Cognizant Technology's business and its evolving consumer preferences.
- Compare Cognizant Technology's performance and market position to its competitors. Analyze how Cognizant Technology is positioned in terms of product offerings, innovation, and market share.
- Check if Cognizant Technology pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Cognizant Technology's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Cognizant Technology Solutions stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Cognizant Technology Solutions is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Cognizant Technology Stock
Researching Cognizant Technology's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 100.0% of the company shares are held by institutions such as insurance companies. The book value of Cognizant Technology was currently reported as 29.11. The company has Price/Earnings To Growth (PEG) ratio of 1.78. Cognizant Technology last dividend was issued on the 18th of February 2025. The entity had 2:1 split on the 10th of March 2014.
To determine if Cognizant Technology is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Cognizant Technology's research are outlined below:
| Cognizant Technology is unlikely to experience financial distress in the next 2 years | |
| Cognizant Technology has a strong financial position based on the latest SEC filings | |
| Over 100.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from finance.yahoo.com: Belcan Establishes Aerospace Defense Hub in Toulouse, France |
Cognizant Technology Quarterly Good Will |
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Cognizant Technology uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Cognizant Technology Solutions. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Cognizant Technology's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of February 2024 Upcoming Quarterly Report | View | |
| 1st of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 6th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Cognizant Technology's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Cognizant Technology's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2006-08-02 | 2006-06-30 | 0.08 | 0.09 | 0.01 | 12 | ||
2006-05-03 | 2006-03-31 | 0.07 | 0.08 | 0.01 | 14 | ||
2006-02-09 | 2005-12-31 | 0.07 | 0.08 | 0.01 | 14 | ||
2005-04-27 | 2005-03-31 | 0.05 | 0.06 | 0.01 | 20 | ||
2004-10-26 | 2004-09-30 | 0.04 | 0.05 | 0.01 | 25 | ||
2004-04-20 | 2004-03-31 | 0.03 | 0.04 | 0.01 | 33 | ||
2003-07-22 | 2003-06-30 | 0.02 | 0.03 | 0.01 | 50 | ||
2007-11-06 | 2007-09-30 | 0.14 | 0.16 | 0.02 | 14 |
Cognizant Technology Target Price Consensus
Cognizant target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Cognizant Technology's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 27 | Buy |
Most Cognizant analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Cognizant stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Cognizant Technology, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationCognizant Technology Target Price Projection
Cognizant Technology's current and average target prices are 84.84 and 84.18, respectively. The current price of Cognizant Technology is the price at which Cognizant Technology Solutions is currently trading. On the other hand, Cognizant Technology's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Cognizant Technology Market Quote on 25th of February 2025
Target Price
Analyst Consensus On Cognizant Technology Target Price
Cognizant Technology Analyst Ratings
Cognizant Technology's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Cognizant Technology stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Cognizant Technology's financials, market performance, and future outlook by experienced professionals. Cognizant Technology's historical ratings below, therefore, can serve as a valuable tool for investors.Know Cognizant Technology's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Cognizant Technology is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Cognizant Technology Solutions backward and forwards among themselves. Cognizant Technology's institutional investor refers to the entity that pools money to purchase Cognizant Technology's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Morgan Stanley - Brokerage Accounts | 2024-12-31 | 7.3 M | Norges Bank | 2024-12-31 | 6.9 M | Fidelity International Ltd | 2024-09-30 | 6.3 M | Dimensional Fund Advisors, Inc. | 2024-12-31 | 6 M | Northern Trust Corp | 2024-12-31 | 6 M | Wellington Management Company Llp | 2024-12-31 | 5.9 M | Barrow Hanley Mewhinney & Strauss Llc | 2024-12-31 | 4.6 M | Legal & General Group Plc | 2024-12-31 | 4.5 M | Ubs Asset Mgmt Americas Inc | 2024-12-31 | 4.4 M | Vanguard Group Inc | 2024-12-31 | 59 M | Blackrock Inc | 2024-12-31 | 55.7 M |
Cognizant Technology's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 41.82 B.Market Cap |
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Cognizant Technology's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.20 | 0.14 | |
| Return On Capital Employed | 0.18 | 0.23 | |
| Return On Assets | 0.11 | 0.15 | |
| Return On Equity | 0.16 | 0.22 |
Determining Cognizant Technology's profitability involves analyzing its financial statements and using various financial metrics to determine if Cognizant Technology is a good buy. For example, gross profit margin measures Cognizant Technology's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Cognizant Technology's profitability and make more informed investment decisions.
Cognizant Technology's Earnings Breakdown by Geography
Evaluate Cognizant Technology's management efficiency
Cognizant Technology has return on total asset (ROA) of 0.0984 % which means that it generated a profit of $0.0984 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1621 %, meaning that it created $0.1621 on every $100 dollars invested by stockholders. Cognizant Technology's management efficiency ratios could be used to measure how well Cognizant Technology manages its routine affairs as well as how well it operates its assets and liabilities. As of now, Cognizant Technology's Return On Capital Employed is increasing as compared to previous years. The Cognizant Technology's current Return On Assets is estimated to increase to 0.15, while Return On Tangible Assets are projected to decrease to 0.14. As of now, Cognizant Technology's Other Current Assets are increasing as compared to previous years. The Cognizant Technology's current Intangible Assets is estimated to increase to about 1.7 B, while Total Current Assets are projected to decrease to under 4.5 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 29.05 | 30.50 | |
| Tangible Book Value Per Share | 11.81 | 12.40 | |
| Enterprise Value Over EBITDA | 10.58 | 20.54 | |
| Price Book Value Ratio | 2.65 | 2.51 | |
| Enterprise Value Multiple | 10.58 | 20.54 | |
| Price Fair Value | 2.65 | 2.51 | |
| Enterprise Value | 28.5 B | 29.9 B |
Leadership at Cognizant Technology emphasizes sustainable growth and financial prudence. Our analysis evaluates how these priorities impact the stock's performance in the market.
Basic technical analysis of Cognizant Stock
As of the 25th of February, Cognizant Technology shows the Risk Adjusted Performance of 0.1004, downside deviation of 1.26, and Mean Deviation of 0.8752. Cognizant Technology technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Cognizant Technology's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Cognizant Technology insiders, such as employees or executives, is commonly permitted as long as it does not rely on Cognizant Technology's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Cognizant Technology insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Cognizant Technology's Outstanding Corporate Bonds
Cognizant Technology issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Cognizant Technology uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Cognizant bonds can be classified according to their maturity, which is the date when Cognizant Technology Solutions has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| CCOI 7 15 JUN 27 Corp BondUS19240CAE30 | View | |
| US19240CAC73 Corp BondUS19240CAC73 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View |
Understand Cognizant Technology's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Cognizant Technology's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1004 | |||
| Market Risk Adjusted Performance | 0.238 | |||
| Mean Deviation | 0.8752 | |||
| Semi Deviation | 1.15 | |||
| Downside Deviation | 1.26 | |||
| Coefficient Of Variation | 760.96 | |||
| Standard Deviation | 1.2 | |||
| Variance | 1.44 | |||
| Information Ratio | 0.1271 | |||
| Jensen Alpha | 0.151 | |||
| Total Risk Alpha | 0.1557 | |||
| Sortino Ratio | 0.1212 | |||
| Treynor Ratio | 0.228 | |||
| Maximum Drawdown | 7.23 | |||
| Value At Risk | (1.79) | |||
| Potential Upside | 1.7 | |||
| Downside Variance | 1.59 | |||
| Semi Variance | 1.31 | |||
| Expected Short fall | (0.94) | |||
| Skewness | (0.31) | |||
| Kurtosis | 2.67 |
| Risk Adjusted Performance | 0.1004 | |||
| Market Risk Adjusted Performance | 0.238 | |||
| Mean Deviation | 0.8752 | |||
| Semi Deviation | 1.15 | |||
| Downside Deviation | 1.26 | |||
| Coefficient Of Variation | 760.96 | |||
| Standard Deviation | 1.2 | |||
| Variance | 1.44 | |||
| Information Ratio | 0.1271 | |||
| Jensen Alpha | 0.151 | |||
| Total Risk Alpha | 0.1557 | |||
| Sortino Ratio | 0.1212 | |||
| Treynor Ratio | 0.228 | |||
| Maximum Drawdown | 7.23 | |||
| Value At Risk | (1.79) | |||
| Potential Upside | 1.7 | |||
| Downside Variance | 1.59 | |||
| Semi Variance | 1.31 | |||
| Expected Short fall | (0.94) | |||
| Skewness | (0.31) | |||
| Kurtosis | 2.67 |
Consider Cognizant Technology's intraday indicators
Cognizant Technology intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Cognizant Technology stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Cognizant Technology Corporate Filings
F4 | 19th of February 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10K | 12th of February 2025 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
8K | 5th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
Cognizant Stock media impact
Far too much social signal, news, headlines, and media speculation about Cognizant Technology that are available to investors today. That information is available publicly through Cognizant media outlets and privately through word of mouth or via Cognizant internal channels. However, regardless of the origin, that massive amount of Cognizant data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Cognizant Technology news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Cognizant Technology relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Cognizant Technology's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Cognizant Technology alpha.
Cognizant Technology Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Cognizant Technology can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Cognizant Technology Historical Investor Sentiment
Investor biases related to Cognizant Technology's public news can be used to forecast risks associated with an investment in Cognizant. The trend in average sentiment can be used to explain how an investor holding Cognizant can time the market purely based on public headlines and social activities around Cognizant Technology Solutions. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Cognizant Technology's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Cognizant Technology and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Cognizant Technology news discussions. The higher the estimate score, the more favorable the investor's outlook on Cognizant Technology.
Cognizant Technology Maximum Pain Price Across April 17th 2025 Option Contracts
Cognizant Technology's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Cognizant Technology close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Cognizant Technology's options.
Cognizant Technology Corporate Management
| Katie CFA | Global Relations | Profile | |
| Rajesh MCA | Chairman VP | Profile | |
| Anil Cheriyan | Ex Technology | Profile | |
| Balu Ayyar | Automation Operations | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cognizant Technology Solutions. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Is IT Consulting & Other Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cognizant Technology. If investors know Cognizant will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cognizant Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.01) | Dividend Share 1.21 | Earnings Share 4.51 | Revenue Per Share | Quarterly Revenue Growth 0.068 |
The market value of Cognizant Technology is measured differently than its book value, which is the value of Cognizant that is recorded on the company's balance sheet. Investors also form their own opinion of Cognizant Technology's value that differs from its market value or its book value, called intrinsic value, which is Cognizant Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cognizant Technology's market value can be influenced by many factors that don't directly affect Cognizant Technology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Cognizant Technology's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Cognizant Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cognizant Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.