Don't Buy Cognizant Technology Solutions Without Checking Its Fundamentals!

Shares of Technology sector company Cognizant Technology Solutions moved -0.4% today, and are now trading at a price of $75.87. The large-cap stock's daily volume was 1,312,851 compared to its average volume of 3,314,069. The S&P 500 index returned a 1.0% performance.

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. The company is based in Teaneck and has 346,600 full time employees. Its market capitalization is $38,042,206,208. Cognizant Technology Solutions currently offers its equity investors a dividend that yields 1.5% per year.

24 analysts are following Cognizant Technology Solutions and have set target prices ranging from $60.0 to $87.0 per share. On average, they have given the company a rating of hold. At today's prices, CTSH is trading 6.42% away from its average analyst target price of $71.29 per share.

Over the last year, CTSH's share price has increased by 38.5%, which represents a difference of 14.9% when compared to the S&P 500. The stock's 52 week high is $76.85 per share whereas its 52 week low is $54.25. Cognizant Technology Solutions's average free cash flow over the last 6 years has been $2.27 Billion, but they have been decreasing at an average rate of -0.6%. This may prove a challenge to the long term sustainability of the stock's upwards trend.

Date Reported Cash Flow from Operations ($ k) Capital expenditures ($ k) Free Cash Flow ($ k) YoY Growth (%)
2023 2,295,000 329,000 1,966,000 -12.08
2022 2,568,000 332,000 2,236,000 0.9
2021 2,495,000 279,000 2,216,000 -23.61
2020 3,299,000 398,000 2,901,000 37.68
2019 2,499,000 392,000 2,107,000 -4.88
2018 2,592,000 377,000 2,215,000
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.