Cognizant Tech Solutions had its Relative Strength (RS) Rating upgraded from 67 to 74 Friday — a welcome improvement, but still short of the 80 or better score you look for.
IBD's unique RS Rating identifies technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the trailing 52 weeks compares to the rest of the market.
Over 100 years of market history reveals that the best stocks often have an RS Rating north of 80 as they begin their largest climbs. See if Cognizant Tech Solutions can continue to rebound and hit that benchmark.
When To Sell Stocks To Lock In Profits And Minimize Losses
Cognizant Tech Solutions broke out earlier, but is now trading approximately 4% below the prior 82.41 entry from a flat base. If a stock you're watching breaks past a buy point then falls 7% or more below the original entry price, it's considered a failed base. It's best to wait for the stock to form a new base and breakout. Also keep in mind that the latest consolidation is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
Top and bottom line growth moved higher last quarter. Earnings were up 8%, compared to 6% in the prior report. Revenue increased from -1% to 3%.
Cognizant Tech Solutions holds the No. 18 rank among its peers in the Computer-Technical Services industry group. Gorilla Technology Group, Dave and Globant are among the top 5 highly rated stocks within the group.
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