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 $174.4 million.
- CTSH has traded 311,680 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: Provide application outsourcing services and enterprise consulting solutions Tier: 3. CTSH has a PE ratio of 22.9. Currently there are 13 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 1.8 million shares per day over the past 30 days. Cognizant Technology has a market cap of $30.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.58 and a short float of 1.4% with 2.44 days to cover. Shares are down 1% year-to-date as of the close of trading on Wednesday. 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, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. 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 20.6%. Since the same quarter one year prior, revenues rose by 20.9%. 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 3.17, which clearly demonstrates the ability to cover short-term cash needs.
- COGNIZANT TECH SOLUTIONS has improved earnings per share by 15.2% 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 $4.03 versus $3.44 in the prior year. This year, the market expects an improvement in earnings ($4.74 versus $4.03).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the IT Services industry average. The net income increased by 16.3% when compared to the same quarter one year prior, going from $278.78 million to $324.33 million.
- 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 30.62% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- 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.