Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Cognizant Technology Solutions Corporation ( CTSH) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Cognizant Technology Solutions Corporation as such a stock due to the following factors:
- CTSH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $156.0 million.
- CTSH has traded 3.1 million shares today.
- CTSH is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in CTSH with the Ticky from Trade-Ideas. See the FREE profile for CTSH NOW at Trade-Ideas More details on CTSH: 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. CTSH has a PE ratio of 24.0. Currently there are 14 analysts that rate Cognizant Technology Solutions Corporation a buy, no analysts rate it a sell, and 3 rate it a hold. The average volume for Cognizant Technology Solutions Corporation has been 2.0 million shares per day over the past 30 days. Cognizant Technology has a market cap of $28.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.61 and a short float of 1.8% with 3.54 days to cover. Shares are up 26.9% year-to-date as of the close of trading on Thursday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant 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, 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. Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 22.7%. Since the same quarter one year prior, revenues rose by 21.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CTSH has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.28, which clearly demonstrates the ability to cover short-term cash needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 34.45% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CTSH should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- COGNIZANT TECH SOLUTIONS has improved earnings per share by 15.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, COGNIZANT TECH SOLUTIONS increased its bottom line by earning $3.44 versus $2.85 in the prior year. This year, the market expects an improvement in earnings ($4.02 versus $3.44).
- The net income growth from the same quarter one year ago has significantly exceeded that of the IT Services industry average, but is less than that of the S&P 500. The net income increased by 15.4% when compared to the same quarter one year prior, going from $276.90 million to $319.63 million.
- You can view the full Cognizant Technology Solutions Corporation Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.