Trade-Ideas LLC identified Cognizant Technology Solutions Corp A ( CTSH) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Cognizant Technology Solutions Corp A as such a stock due to the following factors:

  • CTSH has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 2.39 mentions/day.
  • CTSH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $286.8 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on CTSH:

Cognizant Technology Solutions Corporation provides information technology (IT), consulting, and business process services worldwide. The company operates through four segments: Financial Services, Healthcare, Manufacturing/Retail/Logistics, and Other. CTSH has a PE ratio of 24. Currently there are 17 analysts that rate Cognizant Technology Solutions Corp A a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Cognizant Technology Solutions Corp A has been 4.2 million shares per day over the past 30 days. Cognizant Technology Solutions Corp A has a market cap of $36.9 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.97 and a short float of 0.9% with 1.04 days to cover. Shares are down 0.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cognizant Technology Solutions Corp A 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, growth in earnings per share, increase in net income and good cash flow from operations. We feel its 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 18.4%. Since the same quarter one year prior, revenues rose by 23.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CTSH's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.10, which clearly demonstrates the ability to cover short-term cash needs.
  • COGNIZANT TECH SOLUTIONS has improved earnings per share by 12.1% 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 $2.35 versus $2.02 in the prior year. This year, the market expects an improvement in earnings ($3.04 versus $2.35).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 11.7% when compared to the same quarter one year prior, going from $355.62 million to $397.20 million.
  • Net operating cash flow has increased to $817.90 million or 40.24% when compared to the same quarter last year. In addition, COGNIZANT TECH SOLUTIONS has also vastly surpassed the industry average cash flow growth rate of -19.04%.

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