Skip to main content
CTSHCognizant Technology Solutions Sell5.4·$50.35-3.48%
Open full analysis

Cognizant Technology Solutions (CTSH) Stock Analysis

SellVALUE-TRAP 1/5High Confidence

Technology · Information Technology Services

Sell if holding. Momentum 1.6/10 is below the 5.0 floor at $50.35 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 7.2): -1.5; Weak growth.

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

$50.35+29.0% A.UpsideScore 5.4/10#17 of 34 Information Technology Services
QualityF-score8 / 9FCF yield7.74%
IncomeYield2.53%(5y avg 1.59%)Payout27.33%sustainable
Stop $46.91Target $65.06(analyst − 10%)A.R:R 3.4:1
Analyst target$72.29+43.6%26 analysts
$65.06our TP
$50.35price
$72.29mean
$93

Sell if holding. Momentum 1.6/10 is below the 5.0 floor at $50.35 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 7.2): -1.5; Weak growth. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.4/10, high confidence.

Passes 7/9 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 44d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: moderate.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-06-15
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Wed, Jul 29, 202644d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (4/4)
Attractive valuation
Analyst upside: 29%
Risks
Leverage penalty (D/E 7.2): -1.5
Weak growth
Negative momentum

Key Metrics

P/E (TTM)11.3
P/E (Fwd)8.5
Mkt Cap$24.7B
EV/EBITDA6.2
Profit Mgn10.4%
ROE14.9%
Rev Growth5.8%
Beta0.81
Dividend2.53%
Rating analysts37

Quality Signals

Piotroski F8/9

Options Flow

P/C0.46bullish
IV73%elevated
Max Pain$125+148.3% vs spot

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

Show full disclosure ▾

About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.

Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.

No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.

No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.

Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers·1 ceiling hit

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Volume
0.3
Obv
1.0
Ma Position
1.0
Macd
1.3
Rsi
4.5
Volume distribution (falling OBV)Below 200-MA, MA slope -4.1%/30d — confirmed downtrend

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

Earnings Growth
2.7
Revenue Growth
3.9
GatesMomentum 1.6<4.5Death cross (50MA < 200MA)A.R:R 3.4 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 44d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
45 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $47.31Resistance $57.65

Price Targets

$47
$65
A.Upside+29.2%
A.R:R3.4:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! momentum at 1.6 (below the engine's 4.5 threshold)
! Death cross — 50-day MA below 200-day MA

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-07-29 (44d)

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?

Sell if holding. Momentum 1.6/10 is below the 5.0 floor at $50.35 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 7.2): -1.5; Weak growth. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $46.91. Score 5.4/10, high confidence.

What is the CTSH stock price target?

Take-profit target: $65.06 (+29.0% upside). Prior stop was $46.91. Stop-loss: $46.91.

What are the risks of investing in CTSH?

Leverage penalty (D/E 7.2): -1.5; Weak growth; Negative momentum.

Is CTSH overvalued or undervalued?

Cognizant Technology Solutions trades at a P/E of 11.3 (forward 8.5). TrendMatrix value score: 8.8/10. Verdict: Sell.

What do analysts say about CTSH?

37 analysts cover CTSH with a consensus score of 3.6/5. Average price target: $72.

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.

Related stocks: FIS (Fidelity National Information S) · INOD (Innodata Inc.) · GDS (GDS Holdings Limited) · G (Genpact Limited) · JKHY (Jack Henry & Associates, Inc.)
Home Stocks CTSH

Latest news

Latest News

Morningstar47d agoEarnings
Seeking Alpha47d ago
Seeking Alpha47d ago
Seeking Alpha48d ago
Yahoo Finance20d ago
MarketBeat55d agoAnalyst
TIKR.com26d ago
Yahoo Finance27d ago
Yahoo Finance48d ago
MarketBeat49d ago
MarketWatch20d ago
GuruFocus55d agoProduct
Yahoo Finance55d ago
The Globe and Mail28d ago
Seeking Alpha47d ago
Quiver Quantitative53d agoLegal
MarketWatch25d ago
PR Newswire26d ago
GuruFocus26d ago
MarketBeat51d ago
Loading more...