Cognizant Technology Solutions Corporation (NASDAQ:CTSH) traded at $63.92 at close of the session on Tuesday, 01/24/23, made a downward move of -0.50% on its previous day’s price.
Looking at the stock we see that its previous close was $64.24 and the beta (5Y monthly) reads 1.05 with the day’s price range being $63.66 – $64.52. The company has a trailing 12-month PE ratio of 14.23. In terms of its 52-week price range, CTSH has a high of $93.47 and a low of $51.33. The company’s stock has gained about 14.90% over that past 30 days.
Cognizant Technology Solutions Corporation has a market cap of $32.13 billion and is expected to release its quarterly earnings report on Jan 31, 2023 – Feb 06, 2023. With its Forward Dividend at 1.08 and a yield of 1.69%, 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 $1.16, with the EPS growth for the year raised at $4.54 for 2022 and $4.98 for next year. These figures represent 10.20% and 9.70% 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 $5 billion, with a low of $4.97 billion and a high of $5.03 billion. The median projection represents growth squeezing down to 5.90% compared to sales growth for the corresponding quarter a year ago. According to analyst consensus estimates figures, the company’s yearly revenue forecast for 2022 is expected to hit $19.83 billion, or 7.10% up from figures reported last year.
There have been no upward and no downward revisions for the stock’s EPS in last 7 days, something that reflects the nature of company’s price movement in short term. On the other hand, looking at the outlook for the CTSH stock, short term indicators assign the stock an average of 50% Buy, while medium term indicators assign it an average of 50% Sell. Long term indicators on average place the stock in the category of Hold.
Looking further, we note that the PEG ratio for the CTSH stock currently stands at 2.62, and the current price level is 6.90% off its SMA20 and 8.01% from its 50-day simple moving average. The RSI (14) is pointing at 62.86 while the volatility over the past week is 2.73% and jumps to 2.68% over the past one month. The beta value is 1.04, while the average true range (ATR) is currently pointing at 1.73.
Let’s briefly compare Cognizant Technology Solutions Corporation (CTSH) stock to its peers. We find that current price change of -0.50% and -24.14% over the past 12 months for CTSH competes that of Cadence Design Systems Inc. (CDNS), which has seen its stock price fall -0.56% in the last trading session and was 22.98% over the last one year. Another of its peers Palantir Technologies Inc. (PLTR) has dropped -4.88% previous session, and was -48.12% down over the past year.. In contrast to these companies, both the S&P 500 Index and the Dow Jones Industrial were at -0.07% and 0.31%, 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 4.61 million, while that of the preceding 10-day period stands at 6.68 million. Current shares outstanding are 516.00 million.
The insiders hold 0.10% of the company’s shares while institutions hold 93.50%. The data shows that short shares as of Oct 13, 2022, stood at 8.28 million at a short ratio of 2.21. This represents a 1.60% short interest in shares outstanding on Oct 13, 2022. Shares short fall in October from the previous month at 8.41 million. Investors should be excited about this stock as its upside potential is great, with current price pushing the stock 11.77% up in year-to-date price movement.