Cognizant Technology Solutions Corporation (CTSH): Today's Featured Computer Software & Services 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 Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Cognizant Technology Solutions Corporation fell $2.67 (-3.8%) to $67.81 on heavy volume. Throughout the day, 5,831,705 shares of Cognizant Technology Solutions Corporation exchanged hands as compared to its average daily volume of 2,078,100 shares. The stock ranged in price between $67.71-$70.36 after having opened the day at $70.29 as compared to the previous trading day's close of $70.48. Other companies within the Computer Software & Services industry that declined today were: China Information Technology ( CNIT), down 13.7%, Insight ( NSIT), down 10.9%, Park City Group ( PCYG), down 7.0% and QAD ( QADB), down 7.0%.
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Cognizant Technology Solutions Corporation provides information technology (IT), consulting, and business process outsourcing services worldwide. The company operates through four segments: Financial Services; Healthcare; Manufacturing, Retail, and Logistics; and Other. Cognizant Technology Solutions Corporation has a market cap of $21.4 billion and is part of the technology sector. The company has a P/E ratio of 20.6, above the S&P 500 P/E ratio of 17.7. Shares are down 4.0% year to date as of the close of trading on Thursday.

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, reasonable valuation levels, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Intelligent Systems ( INS), down 13.3%, China Mobile Games and Entertainment Group ( CMGE), down 7.5%, TigerLogic Corporation ( TIGR), down 6.5% and Cover-All Technologies ( COVR), down 6.3% , were all gainers within the computer software & services industry with Fidelity National Information Services ( FIS) being today's featured computer software & services industry leader.

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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