Cognizant Technology Solutions Corporation (CTSH): Today's Featured Technology Laggard

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 lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.1%. By the end of trading, Cognizant Technology Solutions Corporation fell $1.61 (-2%) to $77.12 on light volume. Throughout the day, 1.6 million shares of Cognizant Technology Solutions Corporation exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in price between $76.99-$78.65 after having opened the day at $78.54 as compared to the previous trading day's close of $78.73. Other companies within the Technology sector that declined today were: Trio-Tech International ( TRT), down 15.1%, Deltathree ( DDDC), down 13.3%, Warwick Valley Telephone Company ( WVT), down 11.9%, and Alteva ( ALTV), down 11.9%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $23.57 billion and is part of the computer software & services industry. The company has a P/E ratio of 21.2, above the S&P 500 P/E ratio of 17.7. Shares are up 6.3% 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 increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Zhone Technologies ( ZHNE), up 22.3%, XRS ( XRSC), up 20.9%, SunPower Corporation ( SPWR), up 19%, and Orion Energy Systems ( OESX), up 15.9%, were all gainers within the technology sector with Rackspace Hosting ( RAX) being today's featured technology sector leader.

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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Cognizant Technology, Advanced Micro Devices: 'Mad Money' Lightning Round

Play Defense, Play the Dollar: Cramer's 'Mad Money' Recap (Tuesday 8/29/17)

Infosys Is Tanking Because Its Ex-CEO's Transformation Efforts Are Now in Limbo

Think for Yourself