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Cognizant Technology Solutions Corporation (NASDAQ:CTSH): A Fundamentally Weighted Stock for Long-Term Investors

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) previous close was $71.56 while the outstanding shares total 530.00M. The firm has a beta of 1.15, a 12-month trailing P/E ratio of 24.98, and a growth ratio of 2.10. CTSH’s shares traded lower over the last trading session, losing -0.52% on 06/01/21. The shares fell to a low of $71.10 before closing at $71.19. Intraday shares traded counted 4.7 million, which was -27.49% lower than its 30-day average trading volume of 3.69M. The stock’s Relative Strength Index (RSI) is 34.03, with weekly volatility at 1.15% and ATR at 1.44. The CTSH stock’s 52-week price range has touched low of $52.23 and a $82.73 high.

Investors have identified the Information Technology Services company Cognizant Technology Solutions Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $37.32 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Cognizant Technology Solutions Corporation (CTSH) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 6.59 billion total, with 3.15 billion as their total liabilities.

CTSH were able to record 93.0 million as free cash flow during the 08/05/2021 quarter of the year, this saw their quarterly net cash flow reduce by -707.0 million. In cash movements, the company had a total of 181.0 million as operating cash flow.

Potential earnings growth for Cognizant Technology Solutions Corporation (CTSH)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/05/2021 quarter of the year, Cognizant Technology Solutions Corporation recorded a total of 4.4 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 4.0% coming in sequential stages and their sales for the 08/05/2021 quarter increasing by 4.93%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 2.76 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.64 billion. This allows shareholders to hold on to 530.00M with the recently reported earning now reading 0.95 cents per share. This is a figure that compared to analyst’s prediction for their 08/05/2021 (0.97 cents a share).

Having a look at the company’s valuation, the company is expected to record 4.41 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on CTSH sounds very interesting.

Is the stock of CTSH attractive?

In related news, Director, Patsalos-Fox Michael sold 5,858 shares of the company’s stock in a transaction that recorded on May 27. The sale was performed at an average price of 71.20, for a total value of 417,090. As the sale deal closes, the President, Digital Business, Frank Malcolm now sold 471 shares of the company’s stock, valued at 36,952. Also, SVP, Controller & CAO, Telesmanic Robert sold 228 shares of the company’s stock in a deal that was recorded on Mar 09. The shares were price at an average price of 74.85 per share, with a total market value of 17,065. Following this completion of acquisition, the President, Digital Business, Frank Malcolm now holds 1,971 shares of the company’s stock, valued at 145,092. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.

12 out of 28 analysts covering the stock have rated it a Buy, while 11 have maintained a Hold recommendation on Cognizant Technology Solutions Corporation. 3 analysts has assigned a Sell rating on the CTSH stock. The 12-month mean consensus price target for the company’s shares has been set at $84.81.

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