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Cognizant Technology Solutions (CTSH) Stock Analysis

HoldVALUE-TRAP 1/5High Confidence

Technology · Information Technology Services

Hold if already holding. Not a fresh buy at $50.92, but acceptable to hold if already in. Reasons: Sector modifier (Technology): -0.8; Leverage penalty (D/E 7.2): -1.5.

Cognizant is one of the world's leading professional services companies, engineering modern businesses and delivering strategic outcomes for our clients. We help clients modernize technology, reimagine processes and transform experiences so they can stay ahead in today's... Read more

$50.92+28.3% A.UpsideScore 5.8/10#8 of 34 Information Technology Services
QualityF-score8 / 9FCF yield7.85%
IncomeYield2.57%(5y avg 1.57%)Payout27.33%sustainable
Stop $47.32Target $65.27(analyst − 10%)A.R:R 2.5:1
Analyst target$72.52+42.4%26 analysts
$65.27our TP
$50.92price
$72.52mean
$93

Hold if already holding. Not a fresh buy at $50.92, but acceptable to hold if already in. Reasons: Sector modifier (Technology): -0.8; Leverage penalty (D/E 7.2): -1.5. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 5.8/10, high confidence.

Passes 7/8 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, earnings proximity 71d clear, semi cycle peak clear, materials cycle peak clear). Suitability: moderate.

Recent Developments — Cognizant Technology Solutions

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
Strong earnings beat streak (4/4)
Positive news sentiment (+0.90)
Attractive valuation
Risks
Sector modifier (Technology): -0.8
Leverage penalty (D/E 7.2): -1.5
Weak growth

Key Metrics

P/E (TTM)11.1
P/E (Fwd)8.3
Mkt Cap$24.3B
EV/EBITDA6.2
Profit Mgn10.4%
ROE14.9%
Rev Growth5.8%
Beta0.80
Dividend2.57%
Rating analysts37

Quality Signals

Piotroski F8/9

Options Flow

P/C1.09bearish
IV56%elevated

Material Events(8-K, last 90d)

  • 2026-02-26Item 5.02MEDIUM
    COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION | By: | /s/ John Kim Name: | John Kim Title: | Chief Legal Officer, Chief Administrative Officer and Corporate Secretary Date: February 26, 2026
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker·1 ceiling hit

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Earnings Growth
2.7
Revenue Growth
3.9
GatesDeath cross (50MA < 200MA)Momentum 6.0>=5.5A.R:R 2.5 ≥ 1.5Insider activity: OKNo SEC red flagsEARNINGS PROXIMITY 71d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
39 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $45.16Resistance $60.03

Price Targets

$47
$65
A.Upside+28.2%
A.R:R2.5:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! NEWS_MOD=+2: SELL_IF_HOLDING → HOLD_IF_HOLDING

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-07-29 (71d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is CTSH stock a buy right now?

Hold if already holding. Not a fresh buy at $50.92, but acceptable to hold if already in. Reasons: Sector modifier (Technology): -0.8; Leverage penalty (D/E 7.2): -1.5. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Target $65.27 (+28.2%), stop $47.32 (−7.6%), A.R:R 2.5:1. Score 5.8/10, high confidence.

What is the CTSH stock price target?

Take-profit target: $65.27 (+28.3% upside). Target $65.27 (+28.2%), stop $47.32 (−7.6%), A.R:R 2.5:1. Stop-loss: $47.32.

What are the risks of investing in CTSH?

Sector modifier (Technology): -0.8; Leverage penalty (D/E 7.2): -1.5; Weak growth.

Is CTSH overvalued or undervalued?

Cognizant Technology Solutions trades at a P/E of 11.1 (forward 8.3). TrendMatrix value score: 8.8/10. Verdict: Hold.

What do analysts say about CTSH?

37 analysts cover CTSH with a consensus score of 3.6/5. Average price target: $73.

What does Cognizant Technology Solutions do?Cognizant is one of the world's leading professional services companies, engineering modern businesses and delivering...

Cognizant is one of the world's leading professional services companies, engineering modern businesses and delivering strategic outcomes for our clients. We help clients modernize technology, reimagine processes and transform experiences so they can stay ahead in today's fast-changing world, where AI is reshaping organizations in every field.

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