Cognizant Technology Solutions Corporation (CTSH) Stock

Cognizant Technology Solutions Corporation trades at a P/E ratio of 16.37, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 15.36 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.85 indicates reasonable value when growth is considered.

With a beta of 0.98, Cognizant Technology Solutions Corporation is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 2.57 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Cognizant Technology Solutions Corporation achieves a profit margin of 11.70%, meaning it retains $11.70 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 15.50% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 16.60% and ROA at 10.10%, the company generates strong returns on invested capital.

Cognizant Technology Solutions Corporation's revenue grew by 7.50% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 22.00% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SERVICES-COMPUTER PROGRAMMING SERVICES industry averages for proper context.

Cognizant Technology Solutions Corporation offers a dividend yield of 1.60%, paying $1.22 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 5/19/2025.

The dividend sustainability can be assessed through the payout ratio - Cognizant Technology Solutions Corporation pays $1.22 per share in dividends against earnings of $4.75 per share, resulting in a payout ratio of 25.68%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for 5/28/2025.

Cognizant Technology Solutions Corporation has a market capitalization of $38.32B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 492.94M shares outstanding, the company's ownership is relatively concentrated. As a participant in the SERVICES-COMPUTER PROGRAMMING SERVICES industry, it competes with other firms in this sector.

Cognizant Technology Solutions Corporation's book value per share is $30.22, while the current stock price is $76.67, resulting in a price-to-book (P/B) ratio of 2.54. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

27 analysts cover CTSH with 26% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $87.21 implies 13.7% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:3 Strong Buy, 4 Buy, 19 Hold, 1 Sell, 0The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

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MACD and moving average data are not available for this stock.