| Stock (Symbol) | Stock Price | |
Cognizant Technology Solutions (CTSH) |
$49 |
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| Data is as of | Expected to Report | Sector |
June 02, 2014 |
Aug 4 – Aug 8 |
Technology |
| Sharek’s Take | ||
 Cognizant Technology Solutions (CTSH) has a P/E of 21 and is expected to grow profits an average of 14% a qtr during the next four qtrs. I think the stock’s fully valued here and will take the money and walk. I walk because CTSH is a very good stock that I will likely buy again, I just feel its going to be around this price all year, thus I will sell it from the Growth Portfolio. |
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| One-Year Chart | ||
 CTSH had a good 2014, but now the stock has lost steam. Note the P/E of 21 is slightly higher than the Est. LTG of 17% and the Estimates of 16% & 13% profit growth the next 2 qtrs. |
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| Earnings Table | ||
 Revenue increased 20%, that’s great. Profit growth was 21%, also solid.CTSH just met estimates last quarter. Annual Profit Estimates came down a bit, surprising because management has been saying Europe looks good this year. Estimates should have gone up. Quarterly estimates fell a little too. Now the company is expected to have mid-teens profit growth the next four quarters. And since it didn’t beat last qtr I can’t say it will this qtr. |
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| Fair Value | ||
 This stock is overvalued by a little bit. I don’t mind sticking with a long-term winner with no upside to this year’s Fair Value, but next year’s upside isn’t that great either. I don’t want to sit with the stock up to a year and a half and make 12%. |
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| Ten-Year Chart | ||
 Notice at the bottom that the company grew profits 17% a year last year and is supposed to grow profits 17% this year. I think a P/E of 21 is fair for this stock, it’s right where it should be. |
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| 60% in Power Ranking | Bottom Line | |
Growth Portfolio
N/A |
Cognizant Technology Solutions used to be a great growth stock, now its a good one that can be traded. Now is the time to trade out of the stock and wait for it to be undervalued again. CTSH will be sold from the Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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