| Stock (Symbol) | Stock Price | |
Cognizant Technology Solutions (CTSH) |
$84 |
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| Data is as of | Expected to Report | Sector |
October 3, 2013 |
Nov 4 – Nov 8 |
Technology |
| Sharek’s Take | ||
 Cognizant Technology Solutions (CTSH) has gone on a nice run, and now I think its time to take profits. When I bought CTSH on 5/1/13 for $64 I thought the stock would get to $80, for a gain of 25%. Now with the stock past $84 (it’s $87 today, October 15th), CTSH has limited upside. Investors can sell half their position in CTSH, and sell the entire position if you follow the Aggressive Growth Portfolio. |
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| One-Year Chart | ||
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| Earnings Table | ||
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CTSH beat the street by 2 cents, but had only beating by a total of a penny the prior two quarters. |
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| Fair Value | ||
 I’ve owned CTSH on and off since January 2004. CTSH used to ba worth 45 times earnings when profits were growing 45%. Now with high-teens profit growth the stock is worth 18 times earnings. I feel CTSH is a little high here. |
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| Ten-Year Chart | ||
 This has been one of the top stocks to invest in during the past decade. The profit growth is higher than the stock growth because CTSH isn’t worth 45 times earnings as it was a decade ago. |
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| 60% in Power Ranking | Bottom Line | |
Growth Portfolio
19 of 25 |
Cognizant Technology Solutions has made us more than 15% and upside is limited at this point. Now is a good time to take profits. CTSH is ranked 19th of 25 stocks in the Growth Portfolio Power Rankings and has been/will be sold from Aggressive Growth Portfolios. |
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Aggressive Growth Portfolio
N/A |
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In this chart, CTSH has a P/E of 21 yet profit growth is expected to be only 11% and 14% the next two quarters. The company hasn’t really been beating the street, so I think CTSH might only have 15% or so profit growth the next six months. At 21 times earnings, the stock is not on sale.
Profits increases 21% last quarter as revenue increased 20%. Those are solid figures.