| Stock (Symbol) | Stock Price | |
Cognizant Tech. Solutions (CTSH) |
$71 |
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| Data is as of | Expected to Report | Sector |
February 15, 2012 |
May 3 |
Technology |
| Sharek’s Take | ||
 Cognizant Technology Solutions keeps delivering results even as Europe goes through a crisis. Infosys (INFY), another Indian IT outsourcer, cut 2012 guidance due to weakness in Europe. I’m sure the European crisis is causing companies to hold-back on signing new deals or extensions — especially banks. 10% of CTSH’s business comes from the Financial sector and 20% comes from Europe (as of 12/31/2010, Source: Thomson). Still, CTSH came through with a stolid (if unspectacular) quarter — and did not lower guidance. CTSH is slightly undervalued, but should be more appreciated for its consistency. I’ve owned this stock on-and-off since early 2004. The company is a 20% grower over the long term. Those stocks are hard to find — and deserve to be cherished. |
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| One-Year Chart | ||
 The one-year chart is kinda bland. Nothing going on. CTSH got a little ahead of itself a year ago and has had to digest gains.The P/E of 21 is low because I think this 20% grower is worth at least a 25 P/E due to its consistency. |
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| Earnings Table | ||
 Profits rose 18% last quarter on a 27% increase in revenue.CTSH only beat by a penny, but that was good news after INFY’s lowered guidance. Annual Profit Estimates increased slightly. Nothing to look at here. Profits expected to rise 21% this year and 19% next — there’s your 20% growth. Quarterly estimates show profit growth of more than 20% for the next four quarters. CTSH usually beats by a little, so 23% growth could be coming. |
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| Fair Value | ||
 This stock’s worth 25 times earnings. It’s 20% under 2012’s Fair Value. Additionally, CTSH is a great buy-and-hold. |
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| Ten-Year Chart | ||
 I’ve owned CTSH since 1/5/2004 ($12). In 2005 and 2006 it was one of my largest holdings as it ran to $45 by 4/2007. I took profits along the way and eventually sold CTSH at $17 on 12/29/08.CTSH then raced to $59 by 8/12/10 and I bought back in. I sold the position at $78 on 4/18/11 because the stock was fully valued. In round three I’m back in at $64. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
9 of 19 |
Cognizant Technology Solutions is performing well through the Euopean crisis and is set to deliver on 20% profit growth and 20% stock growth this year. CTSH is ranked 9th in the 19 stock Growth Portfolio Power Rankings. This stock is a candidate for the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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