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Teaneck, New Jersey-based Cognizant Technology Solutions Corporation (CTSH) is a leading professional services company that provides consulting, technology, and outsourcing services. With a market cap of $36.8 billion, Cognizant’s operations span various countries in the Americas, Europe, the Middle East, Asia-Pacific, and Africa.
The IT services giant has substantially underperformed the broader market over the past year. CTSH stock has edged up just 1% over the past 52 weeks, compared to the S&P 500 Index’s ($SPX) 15.8% gains over the same time frame. In 2024, CTSH stock dipped 5%, while SPX returned 8.7% on a YTD basis.
Zooming in further, Cognizant has also underperformed the Information Technology ETF Vanguard’s (VGT) 18.4% gains over the past 52 weeks and 6.5% returns on a YTD basis.
CTSH stock rose just marginally after its Q2 earnings release on July 31. The company reported a better-than-expected quarter surpassing the EPS estimates by 4.5%. Although its revenue declined annually, its net income rose by a massive 22.3%.
For the current fiscal year, ending in December, analysts expect Cognizant to report an EPS growth of 2.4% to $4.66. The company has surpassed the consensus EPS estimates in the past four quarters.
Among the 24 analysts covering the CTSH stock, the consensus rating is “Hold.” That’s based on four “Strong Buy” ratings, 19 “Holds,” and one “Moderate Sell.”
This configuration is slightly less bullish than two months ago, with five analysts recommending a “Strong Buy.”
On Aug. 1, RBC Capital analyst Daniel Perlin maintained a “Hold” rating on CTSH stock with a price target of $81.
CTSH’s mean price target of $76.62 represents a premium of 6.8% to current price levels. The Street-high target of $91 indicates a potential upside of 26.9% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
