Trade-Ideas LLC identified Cognizant Technology Solutions ( CTSH) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Cognizant Technology Solutions 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 $214.5 million.
  • CTSH traded 12,372 shares today in the pre-market hours as of 8:10 AM.
  • CTSH is down 2.4% today from yesterday's close.

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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 22. Currently there are 17 analysts that rate Cognizant Technology Solutions a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Cognizant Technology Solutions has been 4.2 million shares per day over the past 30 days. Cognizant Technology has a market cap of $35.1 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.15 and a short float of 1.4% with 2.30 days to cover. Shares are down 4.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cognizant Technology Solutions 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, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 8.7%. Since the same quarter one year prior, revenues rose by 17.9%. 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 0.14 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 2.79, which clearly demonstrates the ability to cover short-term cash needs.
  • COGNIZANT TECH SOLUTIONS has improved earnings per share by 16.9% 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 $2.64 versus $2.35 in the prior year. This year, the market expects an improvement in earnings ($3.39 versus $2.64).
  • 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 16.7% when compared to the same quarter one year prior, going from $362.86 million to $423.40 million.

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