Last Updated: 10 Nov 2024
Executive Summary
Cognizant Technology Solutions Corp (CTSH) is a leading global provider of information technology, consulting, and outsourcing services. The company has a strong financial position with a market capitalization of $39.8 billion and an EBITDA of $3.47 billion. CTSH is currently trading at $80.31 per share, slightly below its 52-week high of $81.75. The company's fundamentals are solid, with a trailing P/E ratio of 17.77 and a forward P/E ratio of 16.21. Analysts are generally positive on CTSH, with 3 strong buy ratings, 3 buy ratings, and 21 hold ratings. The short-term outlook for CTSH is mixed, with the stock price currently trading below its 50-day and 200-day moving averages. However, the long-term outlook is positive, with analysts expecting the company to continue to grow its revenue and earnings in the years to come.
Company Overview
Cognizant is an American multinational technology company that provides business consulting, information technology, and outsourcing services. The company was founded in 1994 and is headquartered in Teaneck, New Jersey. Cognizant has a global presence with operations in over 100 countries. The company's clients include some of the world's largest corporations, including AT&T, Boeing, and IBM.
Fundamental Analysis
Cognizant's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 10% over the past five years. In 2023, Cognizant reported revenue of $19.4 billion and net income of $3.2 billion. The company's profit margin is 11.6%, and its operating margin is 15.3%. Cognizant's balance sheet is also strong, with the company having $7.3 billion in cash and equivalents and $11.2 billion in debt.
Technical Analysis
Cognizant's stock price has been trading in a range between $63.54 and $81.75 over the past 52 weeks. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is at 45.5, which indicates that the stock is neither overbought nor oversold. The moving average convergence divergence (MACD) is also neutral.
Short Term Outlook
The short-term outlook for Cognizant is mixed. The stock price is currently trading below its 50-day and 200-day moving averages, which indicates that the stock is in a downtrend. However, the RSI and MACD are both neutral, which suggests that the stock could be due for a rebound.
Long Term Outlook
The long-term outlook for Cognizant is positive. The company has a strong financial position and a track record of growth. Analysts expect the company to continue to grow its revenue and earnings in the years to come.
Analyst Recommendations
Analysts are generally positive on Cognizant. The consensus recommendation is a hold, with 3 strong buy ratings, 3 buy ratings, and 21 hold ratings. The average analyst target price is $82.31, which represents a potential upside of 2.5% from the current price.
