Cognizant Technology Solutions Corporation (CTSH): Today's Featured Technology 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 Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day up 1.2%. By the end of trading, Cognizant Technology Solutions Corporation rose $1.32 (1.8%) to $74.26 on average volume. Throughout the day, 2.1 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 $72.91-$74.60 after having opened the day at $73.13 as compared to the previous trading day's close of $72.94. Other companies within the Technology sector that increased today were: BOS Better Online Solutions ( BOSC), up 60%, Wireless Ronin Technologies ( RNIN), up 20.9%, DragonWave ( DRWI), up 20.7%, and Selectica ( SLTC), up 17.5%.
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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 $21.77 billion and is part of the computer software & services industry. The company has a P/E ratio of 22, above the S&P 500 P/E ratio of 17.7. Shares are up 12.8% year to date as of the close of trading on Monday. Currently there are 20 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 good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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