Cognizant Technology spiked 4.2% to $90.50 before the bell, on the back of strong earnings. The IT services company reported earnings of $1.13 a share on $2.31 billion in revenue, up 21.9% year on year. The results easily beat analyst forecasts of $1.01 a share on revenue of $2.26 billion.
TheStreet Ratings team rates Cognizant Tech Solutions as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate Cognizant Tech Solutions (CTSH) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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, solid stock price performance, 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 somewhat disappointing return on equity."
- You can view the full analysis from the report here: CTSH Ratings Report