| Stock (Symbol) | Stock Price | |
Cognizant Technology Solutions (CTSH) |
$94 |
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| Data is as of | Expected to Report | Sector |
November 22, 2013 |
Feb 3 – Feb 7 |
Technology |
| Sharek’s Take | ||
 Cognizant Technology Solutions (CTSH) had accelerating revenue growth last quarter. Sales increased 22%, a little better than the 20% growth in the prior quarter. Now CTSH expects 20% revenue growth for the year, a great number for a company this size. There are three reasons for the robust performance. First there was an uptick in discretionary spending. Second was contracts from insurers setting up for Obamacare. Third there are improvements in economic demand, especially in Europe. Although things are clicking right along right now, the stock is fairly valued at 20 times 2014 earnings, so the good news is already baked into CTSH shares. |
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| One-Year Chart | ||
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| Earnings Table | ||
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The company beat the street by 4 cents, business is humming along.. |
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| Fair Value | ||
 This stock is a former top-holding of mine, and a perennial favorite. I was lucky to pick up the stock last year on a dip, and now feel CTSH is fairly valued at this juncture. |
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| Ten-Year Chart | ||
 Although the stock’s spiked recently, profit growth is only expected to be 17% this year. Still, this is a good stock to buy-and-hold. |
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| 60% in Power Ranking | Bottom Line | |
Growth Portfolio
20 of 25 |
Although prospects for 2014 are good, I feel the good news is already priced into the share price of CTSH. Momentum is strong now, but I don’t see much upside at the current quote. CTSH is ranked 20th of 25 stocks in the Growth Portfolio Power Rankings and was sold from the Aggressive Growth Portfolio last quarter. |
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Aggressive Growth Portfolio
N/A |
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CTSH has had quite a run the last six months. I sold around half my position last quarter. Although sales grew 22% last quarter profits only increased 15%. Estimates show teens growth ahead too, so this stock is fairly valued at 20 times earnings.
As mentioned earlier, profits grew 15% on a 22% increase in sales.