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 down 0.6%. By the end of trading, Cognizant Technology Solutions Corporation fell $0.93 (-1.5%) to $62.98 on light volume. Throughout the day, 2,926,312 shares of Cognizant Technology Solutions Corporation exchanged hands as compared to its average daily volume of 4,089,400 shares. The stock ranged in price between $62.49-$64.15 after having opened the day at $63.75 as compared to the previous trading day's close of $63.91. Other companies within the Technology sector that declined today were: Webmedia Brands ( WEBM), down 13.6%, AMSC ( AMSC), down 11.3%, Maxwell Technologies ( MXWL), down 10.3% and Ambient Corporation ( AMBT), down 9.9%.
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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 $19.3 billion and is part of the computer software & services industry. The company has a P/E ratio of 17.9, above the S&P 500 P/E ratio of 17.7. Shares are down 13.4% year to date as of the close of trading on Thursday. Currently there are 20 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 positive front, Bridgeline Digital ( BLIN), down 26.7%, LRAD ( LRAD), down 17.2%, Sky-mobi ( MOBI), down 17.0% and LGL Group ( LGL), down 16.5% , were all gainers within the technology sector with SunEdison ( SUNE) 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).

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