| Stock (Symbol) | Stock Price | |
Cognizant Technology Solutions (CTSH) |
$64 |
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| Data is as of | Expected to Report | Sector |
May 29, 2013 |
Aug 5 – Aug 9 |
Technology |
| Sharek’s Take | ||
 Cognizant Technology Solutions (CTSH) is well of its highs because others in the sector haven’t performed well. But CTSH has, and I’m confident the stock will get back to $80 within a year. Specifically, Infosys Technologies (INFY) keeps lowering profit guidance. This has hammered INFY stock, and CTSH has come down with it. Cognizant did go up after it reported this quarter, but it couldn’t hold the gains. The company is seeing stronger demand for all its services. |
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| One-Year Chart | ||
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| Earnings Table | ||
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CTSH met estimates and only beat by a penny 2QtrsAgo. |
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| Fair Value | ||
 I feel this stock is worth 18 times earnings. Upside for those willing to hold a year is 31%. |
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| Ten-Year Chart | ||
 I like this ten-year chart. Its probable that CTSH will return to its old highs. Once there I think the stock will breakout and make a move higher. I really like the long-term base CTSH is building. It’s quite healthy. |
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| 60% in Power Ranking | Bottom Line | |
Growth Portfolio
12 of 18 |
Cognizant Technology Solutions is seeing strong demand its services and the stock won’t be undervalued for long. This is an excellent investement for long-term investors looking to compound their money at a high-teens rate of return. CTSH is ranked 12th of 18 stocks in the Growth Portfolio Power Rankings and 7th of 10 stocks in the Aggressive Growth Portfolio Power Rankings. |
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Aggressive Growth Portfolio
7 of 10 |
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Its easy to see the INFY news in the CTSH chart (far right). What I do like about this chart is profits have been up every year. With a P/E of only 16, this stock is a good value and long term investors should get some while they can.
Last quarter both sales and profits increased 18%. Two quarters ago sales rose 17% as profits grew 18%.