Cognizant Technology Solutions Stock Buy Hold or Sell Recommendation
| CTSH Stock | USD 79.20 0.69 0.86% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Cognizant Technology Solutions is 'Hold'. The recommendation algorithm takes into account all of Cognizant Technology's available fundamental, technical, and predictive indicators you will find on this site.
Check out Cognizant Technology Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Cognizant and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Cognizant Technology Solutions. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state.
Cognizant |
Execute Cognizant Technology Buy or Sell Advice
The Cognizant recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Cognizant Technology Solutions. Macroaxis does not own or have any residual interests in Cognizant Technology Solutions or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Cognizant Technology's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Cognizant Technology Trading Alerts and Improvement Suggestions
| Cognizant Technology is unlikely to experience financial distress in the next 2 years | |
| Cognizant Technology has a strong financial position based on the latest SEC filings | |
| Over 100.0% of the company shares are held by institutions such as insurance companies | |
| On 27th of November 2024 Cognizant Technology paid $ 0.3 per share dividend to its current shareholders | |
| Latest headline from simplywall.st: Cognizant Technology Solutions Hasnt Managed To Accelerate Its Returns |
Cognizant Technology Returns Distribution Density
The distribution of Cognizant Technology's historical returns is an attempt to chart the uncertainty of Cognizant Technology's future price movements. The chart of the probability distribution of Cognizant Technology daily returns describes the distribution of returns around its average expected value. We use Cognizant Technology Solutions price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Cognizant Technology returns is essential to provide solid investment advice for Cognizant Technology.
| Mean Return | 0.09 | Value At Risk | -1.89 | Potential Upside | 1.93 | Standard Deviation | 1.42 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Cognizant Technology historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Cognizant Stock Institutional Investors
| Shares | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 6.9 M | Norges Bank | 2024-06-30 | 6.5 M | Fidelity International Ltd | 2024-09-30 | 6.3 M | Wellington Management Company Llp | 2024-09-30 | 6.1 M | Macquarie Group Ltd | 2024-09-30 | 6 M | Bank Of America Corp | 2024-09-30 | 5.8 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 5.6 M | Legal & General Group Plc | 2024-09-30 | 5.6 M | Northern Trust Corp | 2024-09-30 | 5.1 M | Vanguard Group Inc | 2024-09-30 | 58.5 M | Blackrock Inc | 2024-06-30 | 53 M |
Cognizant Technology Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 1.5B | 35M | (888M) | 502M | 423M | 444.2M | |
| Free Cash Flow | 2.1B | 2.9B | 2.2B | 2.2B | 2.0B | 1.1B | |
| Depreciation | 526M | 559M | 574M | 569M | 519M | 545.0M | |
| Capital Expenditures | 392M | 398M | 279M | 332M | 317M | 210.4M | |
| Net Income | 1.8B | 1.4B | 2.1B | 2.3B | 2.1B | 2.2B | |
| End Period Cash Flow | 2.6B | 2.7B | 1.8B | 2.3B | 2.7B | 2.9B | |
| Investments | 2.6B | 283M | (915M) | (106M) | (577M) | (548.2M) | |
| Change Receivables | 37M | 264M | (407M) | (238M) | (273.7M) | (287.4M) | |
| Dividends Paid | 453M | 480M | 509M | 564M | (591M) | (561.5M) | |
| Change To Netincome | 30M | 535M | 846M | 33M | 38.0M | 36.1M | |
| Net Borrowings | (28M) | (50M) | (53M) | (39M) | (35.1M) | (33.3M) |
Cognizant Technology Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Cognizant Technology or IT Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Cognizant Technology's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Cognizant stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.07 | |
β | Beta against Dow Jones | 0.16 | |
σ | Overall volatility | 1.43 | |
Ir | Information ratio | 0.04 |
Cognizant Technology Volatility Alert
Cognizant Technology Solutions has relatively low volatility with skewness of -0.08 and kurtosis of 3.49. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cognizant Technology's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Cognizant Technology's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Cognizant Technology Fundamentals Vs Peers
Comparing Cognizant Technology's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Cognizant Technology's direct or indirect competition across all of the common fundamentals between Cognizant Technology and the related equities. This way, we can detect undervalued stocks with similar characteristics as Cognizant Technology or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Cognizant Technology's fundamental indicators could also be used in its relative valuation, which is a method of valuing Cognizant Technology by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Cognizant Technology to competition |
| Fundamentals | Cognizant Technology | Peer Average |
| Return On Equity | 0.16 | -0.31 |
| Return On Asset | 0.0978 | -0.14 |
| Profit Margin | 0.12 % | (1.27) % |
| Operating Margin | 0.15 % | (5.51) % |
| Current Valuation | 39.11 B | 16.62 B |
| Shares Outstanding | 495.82 M | 571.82 M |
| Shares Owned By Insiders | 0.16 % | 10.09 % |
| Shares Owned By Institutions | 99.61 % | 39.21 % |
| Number Of Shares Shorted | 17.99 M | 4.71 M |
| Price To Earning | 13.57 X | 28.72 X |
| Price To Book | 2.72 X | 9.51 X |
| Price To Sales | 2.02 X | 11.42 X |
| Revenue | 19.35 B | 9.43 B |
| Gross Profit | 7.04 B | 27.38 B |
| EBITDA | 3.35 B | 3.9 B |
| Net Income | 2.13 B | 570.98 M |
| Cash And Equivalents | 2.73 B | 2.7 B |
| Cash Per Share | 5.31 X | 5.01 X |
| Total Debt | 1.31 B | 5.32 B |
| Debt To Equity | 0.13 % | 48.70 % |
| Current Ratio | 2.27 X | 2.16 X |
| Book Value Per Share | 29.14 X | 1.93 K |
| Cash Flow From Operations | 2.33 B | 971.22 M |
| Short Ratio | 4.76 X | 4.00 X |
| Earnings Per Share | 4.52 X | 3.12 X |
| Price To Earnings To Growth | 1.32 X | 4.89 X |
| Target Price | 84.78 | |
| Number Of Employees | 340.1 K | 18.84 K |
| Beta | 1.05 | -0.15 |
| Market Capitalization | 39.27 B | 19.03 B |
| Total Asset | 18.48 B | 29.47 B |
| Retained Earnings | 13.3 B | 9.33 B |
| Working Capital | 4.17 B | 1.48 B |
Note: Acquisition by Rajesh Varrier of 748 shares of Cognizant Technology subject to Rule 16b-3 [view details]
Cognizant Technology Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Cognizant . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 37719.85 | |||
| Daily Balance Of Power | (0.45) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 79.35 | |||
| Day Typical Price | 79.3 | |||
| Price Action Indicator | (0.49) | |||
| Period Momentum Indicator | (0.69) |
About Cognizant Technology Buy or Sell Advice
When is the right time to buy or sell Cognizant Technology Solutions? Buying financial instruments such as Cognizant Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out Cognizant Technology Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is IT Consulting & Other Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cognizant Technology. If investors know Cognizant will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cognizant Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.125 | Dividend Share 1.2 | Earnings Share 4.52 | Revenue Per Share 38.96 | Quarterly Revenue Growth 0.03 |
The market value of Cognizant Technology is measured differently than its book value, which is the value of Cognizant that is recorded on the company's balance sheet. Investors also form their own opinion of Cognizant Technology's value that differs from its market value or its book value, called intrinsic value, which is Cognizant Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cognizant Technology's market value can be influenced by many factors that don't directly affect Cognizant Technology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cognizant Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cognizant Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cognizant Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.