Valued at $39.7 billion by market cap, Cognizant Technology Solutions Corporation (CTSH) is a global leader in IT services and consulting. Headquartered in Teaneck, New Jersey, the company provides a comprehensive range of digital, technology, and business solutions, helping clients across industries drive innovation, enhance operational efficiency, and achieve business transformation.
Companies valued at over $10 billion are often categorized as “large-cap stocks,” a distinction Cognizant Technology Solutions exemplifies through its strong market presence, innovation, and leadership in IT services and consulting. Cognizant’s commitment to driving digital transformation, enhancing operational efficiency, and delivering cutting-edge technology and business solutions underscores its stability, adaptability, and ability to thrive in an increasingly competitive and rapidly evolving global digital economy.
Cognizant Technology Solutions is down 2.1% from its 52-week high of $82.41, achieved on Nov. 13. Over the past three months, the stock has gained 3.6%, underperforming the broader Dow Jones Industrials Average’s ($DOWI) 5% gains over the same time frame.
Over the longer term, CTSH stock has risen 6% over the past 52 weeks and gained 6.8% on a YTD basis, significantly underperforming the Dow's YTD growth of 16% and its 17.2% return over the past year.
However, CTSH has shown clear bullish momentum, consistently trading above its 50-day moving average since June and staying above the 200-day moving average since early July.
On Oct. 30, Cognizant Technology Solutions reported its Q3 earnings, leading to a 1.5% dip in its stock. The company posted an adjusted EPS of $1.25, surpassing Wall Street estimates of $1.14 and reflecting a 7.8% year-over-year increase. Revenue reached $5.04 billion, slightly ahead of analysts’ expectations of $5 billion, representing 3% growth compared to the prior year.
Cognizant narrowed its full-year 2024 revenue growth guidance between 1.4% and 1.9% in constant currency, unchanged at the midpoint. Additionally, the adjusted operating margin guidance 2024 remains flat year-over-year at approximately 15.1%.
Its rival, Gartner, Inc. (IT), has gained 13.1% over the past 52 weeks and 11.4% on a YTD basis, outperforming CTSH in both time frames.
Given its recent weak price performance, analysts are cautious about Cognizant Technology Solutions. The stock has a consensus "Hold" rating from 25 analysts, with a mean price target of 81.19, indicating only a modest upside from its current level.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from BarchartThe views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
