Cognizant Technology Solutions Corporation (CTSH): Today's Featured Computer Software & Services Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Cognizant Technology Solutions Corporation ( CTSH) pushed the Computer Software & Services industry higher today making it today's featured computer software & services winner. The industry as a whole closed the day down 0.5%. By the end of trading, Cognizant Technology Solutions Corporation rose $1.04 (1.5%) to $69.81 on light volume. Throughout the day, 1.8 million shares of Cognizant Technology Solutions Corporation exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in a price between $68.45-$69.99 after having opened the day at $69.03 as compared to the previous trading day's close of $68.77. Other companies within the Computer Software & Services industry that increased today were: Kingtone Wirelessinfo Solution ( KONE), up 17.9%, BOS Better Online Solutions ( BOSC), up 9.4%, Datalink Corporation ( DTLK), up 5.7%, and TSR ( TSRI), up 4.8%.
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Cognizant Technology Solutions Corporation provides information technology (IT), consulting, and business process outsourcing services in North America, Europe, and internationally. Cognizant Technology Solutions Corporation has a market cap of $20.71 billion and is part of the technology sector. The company has a P/E ratio of 22.2, equal to the average computer software & services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 6.9% year to date as of the close of trading on Friday. Currently there are 21 analysts that rate Cognizant Technology Solutions Corporation a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Cognizant Technology Solutions Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Avid Technology ( AVID), down 18.1%, Wireless Ronin Technologies ( RNIN), down 14.5%, China Mobile Games and Entertainment Group ( CMGE), down 13.3%, and Vringo ( VRNG), down 8.4%, were all laggards within the computer software & services industry with Cerner Corporation ( CERN) being today's computer software & services industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer software & services industry could consider iShares S&P NA Tech Software Idx ( IGV) while those bearish on the computer software & services industry could consider ProShares Ultra Short Technology ( REW).

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