Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Analysis: Is It The One You’re Looking For?

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Cognizant Technology Solutions Corporation (NASDAQ:CTSH) traded at $82.2 at close of the session on Tuesday, May 04, made an upward move of 2.24% on its previous day’s price.

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Looking at the stock we see that its previous close was $80.4 and the beta (5Y monthly) reads 1.15 with the day’s price range being $80.67 – 82.57. The company has a trailing 12-month PE ratio of 31.97. In terms of its 52-week price range, CTSH has a high of $82.73 and a low of $47.39. The company’s stock has gained about 4.21% over that past 30 days.

Cognizant Technology Solutions Corporation has a market cap of $43.96 Billion and is expected to release its quarterly earnings report on May 05, 2021. With its Forward Dividend at 0.96 and a yield of 1.17%, the company’s investors could be anxious for the CTSH stock to gain ahead of the earnings release. Estimates by analysts give the company expected earnings per share (EPS) of $0.94, with the EPS growth for the year raised at $3.98 for 2021 and $4.39 for next year. These figures represent 0.16% and 0.1% growth in EPS for the two years respectively.

Analysts tracking the company’s growth have also given it a consensus growth in revenue estimated at $4.37 Billion, with a low of $4.34 Billion and a high of $4.4 Billion. The median projection represents growth adding up to 3.3% compared to sales growth for the corresponding quarter a year ago. According to analyst consensus estimates figures, the company’s yearly revenue forecast for 2021 is expected to hit $17.81 Billion, or +7% up from figures reported last year.

On the other hand, looking at the outlook for the CTSH stock, short term indicators assign the stock an average of 100% Buy, while medium term indicators assign it an average of 50% Buy. Long term indicators on average place the stock in the category of 100% Buy.

Based on estimates by 29 analysts, where scores have ranged from 1.00 for a strong buy to 5.00 for a strong sell, 11 have rated the Cognizant Technology Solutions Corporation (CTSH) stock as a Hold, while 12 rate it as a Buy. 2 analyst(s) rate it as outperform while 1 of them rated it as underperform, whereas 3 suggest the stock as a Sell. The stock has an overall rating of Overweight and investors could take advantage and scoop up stock of the company.

Looking further, we note that the PEG ratio for the CTSH stock currently stands at 9.4, and the current price level is 2.83% off its SMA20 and 6.04% from its 50-day simple moving average. The RSI (14) is pointing at 63.81 while the volatility over the past week is 1.8% and drops to 1.55% over the past one month. The beta value is 1.15, while the average true range (ATR) is currently pointing at 1.38. The average price target for the stock over the next 12 months is $85.58, with the estimates having a low of $56.5 and a high of $100. These price ends are -31.27% and +21.65% off the current price level respectively, although investors could be excited at the prospect of a +9.49% if the CTSH share price touches on the median price of $90.

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Let’s briefly compare Cognizant Technology Solutions Corporation (CTSH) stock to its peers. We find that current price change of +2.24% and +45.49% over the past 12 months for CTSH competes that of Wipro Ltd (WIT), which has seen its stock price rise 0.56% in the last trading session and was +125.71% over the last one year. Another of its peers MSCI Inc (MSCI) has climbed 0.09% previous session, and was +51.97% up over the past year, while Tyler Technologies (TYL) was also up 2.24% in the last session, while its price remained in the green at 45.49% over the same period. Cognizant Technology Solutions Corporation has a P/E ratio of 31.97 compared to Wipro Ltd’s 28.02 and MSCI Inc’s 63.29. In contrast to these companies, both the S&P 500 Index and the Dow Jones Industrial were at 0.27% and 0.7%, respectively, at close of the trading.

Coming back to Cognizant Technology Solutions Corporation (NASDAQ:CTSH), we note that the average 3-month trading volume was 3.03 Million, while that of the preceding 10-day period stands at 2.9 Million. Current shares outstanding are 528.53 Million.

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According to data from Thomson Reuters, insiders hold 0.22% of the company’s shares while institutions hold 93.74%. The data shows that short shares as of April 14, 2021, stood at 8.65 Million at a short ratio of 2.95. This represents a 1.64% short interest in shares outstanding on April 14, 2021. Shares short dropped in April from the previous month at 9.42 Million. Investors should be excited about this stock as its upside potential is great, with current price pushing the stock +0.31% up in year-to-date price movement.