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 up 1.1%. By the end of trading, Cognizant Technology Solutions Corporation rose $1.47 (2.3%) to $65.35 on average volume. Throughout the day, 3,445,092 shares of Cognizant Technology Solutions Corporation exchanged hands as compared to its average daily volume of 4,003,300 shares. The stock ranged in a price between $63.44-$65.36 after having opened the day at $64.20 as compared to the previous trading day's close of $63.88. Other companies within the Computer Software & Services industry that increased today were: Bazaarvoice ( BV), up 15.0%, Responsys ( MKTG), up 12.3%, Sonic Foundry ( SOFO), up 11.7% and Kingtone Wirelessinfo Solution ( KONE), up 9.3%.
  • 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 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 $19.6 billion and is part of the technology sector. The company has a P/E ratio of 18.1, above the S&P 500 P/E ratio of 17.7. Shares are down 12.3% year to date as of the close of trading on Wednesday. Currently there are 19 analysts that rate Cognizant Technology Solutions Corporation a buy, no analysts rate it a sell, and 3 rate 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, 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 shows weak operating cash flow.

On the negative front, Rosetta Stone ( RST), down 12.0%, Top Image Systems ( TISA), down 5.5%, Smith Micro Software ( SMSI), down 4.6% and Boingo Wireless ( WIFI), down 4.5%.

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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

null

More from Markets

Street Stats: The Mid-Term Elections May Be a Rollercoaster Ride for Investors

Street Stats: The Mid-Term Elections May Be a Rollercoaster Ride for Investors

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves