CTSH$85.07
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AI CTSH Summary
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Powered by LiveAIOverall Analysis
BuyCognizant Technology Solutions (CTSH) presents a balanced investment profile, with solid fundamental performance and a moderate thematic alignment. Technical indicators suggest short-term choppiness, but the long-term trend remains positive. Suitable for investors seeking growth in the IT services sector.
Thematic
CTSH is well-positioned to benefit from key digital transformation and cloud migration trends, with a significant focus on AI and automation services. However, its broad service offering means it's not as singularly focused as some niche players.
Fundamental
CTSH demonstrates strong financial health with consistent revenue growth, healthy profitability, and a solid balance sheet. The company also returns value to shareholders through dividends.
Technical
CTSH exhibits a generally positive technical picture with its price above key moving averages. However, some oscillators are neutral to slightly cautionary, suggesting potential for consolidation or minor pullbacks before further upside.
| Factor | Score |
|---|---|
| Digital Transformation Services | 90 |
| Artificial Intelligence & Automation | 85 |
| Cloud Computing Adoption | 80 |
| Industry Vertical Focus | 70 |
| Geographic Reach | 80 |
| Factor | Score |
|---|---|
| Valuation | 85 |
| Profitability | 75 |
| Growth | 70 |
| Balance Sheet Health | 95 |
| Cash Flow | 90 |
| Dividends | 80 |
| Factor | Score |
|---|---|
| Trend Analysis | 85 |
| Momentum | 50 |
| Volume | 70 |
| Support & Resistance | 75 |
| Short-term Oscillators | 70 |
AI Investing Checklist
Powered by LiveAIBullish Points (7)
Consistent EPS Beat
Cognizant Technology Solutions Corporation (CTSH) has consistently beaten earnings per share (EPS) estimates in recent quarters, with a surprise percentage averaging 7.5% over the last four reported quarters. This indicates strong operational execution and profitability.
Reasonable P/E Ratio
The trailing Price-to-Earnings (P/E) ratio of 16.15 is below the industry average and suggests that CTSH's stock may be undervalued relative to its earnings potential, offering a potential entry point for value investors.
Bearish Points (7)
Rising P/S Ratio
The Price-to-Sales (P/S) ratio for 2024 is 1.9, which is an increase from previous years (e.g., 1.9 in 2022 and 2.0 in 2023). While not excessively high, the upward trend could signal that the stock is becoming more expensive relative to its revenue.
Slightly Slowing Revenue Growth
While revenue for 2024 was $19.736 billion, the year-over-year growth from 2023 ($19.353 billion) is approximately 1.98%. This represents a slowdown from previous years (e.g., 2022 revenue was $19.428 billion, showing minimal growth from 2023), which could indicate market saturation or increased competition.
Calendar
May 2025
19
Ex-Dividend Date
May 2025
28
Next Dividend Date
July 2025
31
Next Earnings Date
H: $1.29
A: $1.26
L: $1.23
H: 5.26B
A: 5.19B
L: 5.16B
Profile
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services; Health Sciences; Products and Resources; and Communications, Media and Technology. The company provides services including artificial intelligence (AI) and other technology services and solutions, consulting, application development, systems integration, digital engineering, quality engineering and assurance, application maintenance, infrastructure, security, cloud, internet of things, enterprise platform services, and business process services and automation. It also offers AI-led automation, which includes advisory, and process and IT automation solutions designed to simplify and accelerate automation adoption; business process outsourcing services, which help deliver business outcomes including revenue growth, increased customer and employee satisfaction, and cost savings; and Cognizant Moment, a digital experience service that uses AI to reimagine customer experiences and engineer strategies aimed at driving growth. In addition, the company develops, licenses, implements, and supports proprietary and third-party software products and platforms; and develops industry-specific products and services. It offers solution to healthcare providers and payers, life sciences companies, banking, capital markets, payments and insurance companies, manufacturers, automakers, retailers, consumer goods, travel and hospitality, communications, media and entertainment, education, information services, and technology companies, as well as businesses providing logistics, energy, and utility services. The company was incorporated in 1988 and is headquartered in Teaneck, New Jersey.
Seasonals
Price Target
88.24 USD
The 39 analysts offering 1 year price forecasts for CTSH have a max estimate of 103.00 and a min estimate of 80.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
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