Last Updated: 19 Sep 2024
Executive Summary
Cognizant Technology Solutions Corp Class A (CTSH) is a leading provider of business consulting, information technology, and outsourcing services. The company has a strong financial position with a market capitalization of $37.35 billion, EBITDA of $3.46 billion, and EPS of $4.39. CTSH has a trailing PE ratio of 17.16 and a forward PE ratio of 15.53. The company's stock price is currently trading at $75.35, which is within the 52-week range of $61.14 to $79.95.
Company Overview
Cognizant is headquartered in Teaneck, New Jersey, and has operations in over 50 countries. The company provides a wide range of services to its clients, including consulting, application development, infrastructure management, and business process outsourcing. Cognizant has a strong track record of growth and profitability, and it has been recognized as one of the world's leading IT services providers.
Fundamental Analysis
Cognizant's financial performance has been strong in recent years. The company's revenue has grown at a CAGR of 8% over the past five years, and its EPS has grown at a CAGR of 10%. Cognizant has a strong balance sheet with $6.2 billion in cash and short-term investments and $3.5 billion in debt. The company's return on assets is 10.2%, and its return on equity is 16.4%.
Technical Analysis
Cognizant's stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages. The relative strength index (RSI) is 60, which indicates that the stock is overbought.
Short Term Outlook
Cognizant's stock price is expected to continue to trend higher in the short term. The company's strong financial performance and positive technical outlook suggest that the stock is a good investment for investors with a short-term horizon.
Long Term Outlook
Cognizant's long-term outlook is also positive. The company is well-positioned to benefit from the growing demand for IT services. Cognizant's strong financial position and experienced management team give the company a competitive advantage in the market.
Analyst Recommendations
Analysts have a positive outlook on Cognizant. The consensus analyst rating is "buy," and the average analyst target price is $80.51.
