What Cognizant Technology Solutions Investors Should Keep in Mind

By Susan Ramirez • Saturday, February 10 15:42 • Permanent Link

More and more people are talking about Cognizant Technology Solutions over the last few weeks. Is it worth buying the Data Processing Services stock at a price of $77.1? Only time will tell. The information below will give you a basic idea of what this investment may entail:

Cognizant Technology Solutions has moved 13.7% over the last year, and the S&P 500 logged a change of 21.5%
CTSH has an average analyst rating of hold and is 0.08% away from its mean target price of $77.04 per share
Its trailing earnings per share (EPS) is $4.21
Cognizant Technology Solutions has a trailing 12 month Price to Earnings (P/E) ratio of 18.3 while the S&P 500 average is 15.97
Its forward earnings per share (EPS) is $5.01 and its forward P/E ratio is 15.4
The company has a Price to Book (P/B) ratio of 2.9 in contrast to the S&P 500's average ratio of 2.95
Cognizant Technology Solutions is part of the Technology sector, which has an average P/E ratio of 35.0 and an average P/B of 7.92
CTSH has reported YOY quarterly earnings growth of 10.1% and gross profit margins of 0.3%
The company has a free cash flow of $1.88 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter
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 offers customer experience enhancement, robotic process automation, analytics, and AI services in areas, such as digital lending, fraud detection, and next generation payments; the shift towards consumerism, outcome-based contracting, digital health, delivering integrated seamless, omni-channel, and patient-centered experience; and services that drive operational improvements in areas, such as clinical development, pharmacovigilance, and manufacturing, as well as claims processing, enrollment, membership, and billing to healthcare providers and payers, and life sciences companies, including pharmaceutical, biotech, and medical device companies. It also provides solution to manufacturers, automakers, retailers and travel and hospitality companies, as well as companies providing logistics, energy and utility services; and digital content, the creation of personalized user experience, and acceleration of digital engineering services to communications, media and entertainment, education, and information services and technology companies. The company has a strategic partnership with ServiceNow, Inc. to accelerate adoption of AI-driven automation across industries. The company was founded in 1994 and is headquartered in Teaneck, New Jersey.

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.