Momentum Stock Watch: Cognizant Technology Solutions Corporation (CTSH)

Company Profile:

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services worldwide. The company operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology. It offers analytics and artificial intelligence, digital engineering, intelligent process automation, interactive, and hybrid cloud services and solutions; and application development, systems integration, application testing and maintenance, infrastructure, and business process services. The company also develops, licenses, implements, and supports proprietary and third-party software products and platforms for the healthcare industry. In addition, it offers revenue cycle management solutions to the healthcare industry; business advisory and data analytics services; and salesforce services. Further, the company develops custom cloud-based software and platforms; and provides consulting services that enable companies to plan, implement, and optimize automated cloud-based business processes and technologies. It serves banking and insurance, healthcare and life sciences, retail and consumer goods, manufacturing and logistics, travel and hospitality, energy and utilities, communications and media, and technology industries. Cognizant Technology Solutions Corporation was founded in 1994 and is headquartered in Teaneck, New Jersey.

Recent News:

On March 7, 2019, the company announced that it has entered into accelerated share repurchase agreements with HSBC Bank USA, National Association and Societe Generale to repurchase an aggregate of $600 million of Cognizant’s Class A common stock.

On March 5, 2019, the company announced it has acquired Meritsoft, a privately-held financial software company based in Dublin, Ireland. Meritsoft is best known for its FINBOS platform for post-trade processing, an intelligent automation solution for managing taxes, fees, commissions, and cash flow functions between financial institutions.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

CTSH’s strengths can be seen in its better growth, better profitability and better efficiency compared with its peers. Its revenue has increased over recently several years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, the MACD is trying to cross back up and the RSI stands at 56.56 with positive bias. We rate Cognizant Technology Solutions Corporation (CTSH) a STRONG BUY.