How to buy Cognizant Technology Solutions Corp Class A (CTSH) stocks

Cognizant Technology Solutions Corp Class A is an information technology services business based in the US. Cognizant Technology Solutions Corp Class A shares (CTSH) are listed on the NASDAQ and all prices are listed in US Dollars.

Its last market close was $79.23 – a decrease of 1.04% over the previous week. Cognizant Technology Solutions Corp Class A employs 340,100 staff and has a trailing 12-month revenue of around $19.4 billion.

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Cognizant Technology Solutions Corp Class A stock price (NASDAQ: CTSH)

Use our graph to track the performance of CTSH stocks over time.

Cognizant Technology Solutions Corp Class A stocks at a glance

• Key figures

Information last updated 2024-12-18.

Latest market close	$79.23
52-week range	$63.29 - $82.46
50-day moving average more info button	$78.35
200-day moving average more info button	$73.46
Wall St. target price	$84.67
PE ratio more info button	17.3142
Dividend yield more info button	$1.2 (1.48%)
Earnings per share (TTM) more info button	$4.52

Is it a good time to buy Cognizant Technology Solutions Corp Class A stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

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Cognizant Technology Solutions Corp Class A price performance over time

Historical closes compared with the close of $79.49 from 2024-12-19

1 week (2024-12-13)	-0.71%
1 month (2024-11-21)	0.80%
3 months (2024-09-20)	5.09%
6 months (2024-06-21)	16.32%

1 year (2023-12-21)	7.19%
2 years (2022-12-21)	47.74%
3 years (2021-12-21)	81.1503
5 years (2019-12-20)	35.50%

Is Cognizant Technology Solutions Corp Class A stock undervalued or overvalued?

Valuing Cognizant Technology Solutions Corp Class A stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Cognizant Technology Solutions Corp Class A's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Cognizant Technology Solutions Corp Class A's P/E ratio

Cognizant Technology Solutions Corp Class A's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 17x. In other words, Cognizant Technology Solutions Corp Class A shares trade at around 17x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the stock or simply that they're under-valued.

Cognizant Technology Solutions Corp Class A's PEG ratio

Cognizant Technology Solutions Corp Class A's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.3518. A low ratio can be interpreted as meaning the stocks offer better value, while a higher ratio can be interpreted as meaning the stocks offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Cognizant Technology Solutions Corp Class A's future profitability. By accounting for growth, it could also help you if you're comparing the stock prices of multiple high-growth companies.

Cognizant Technology Solutions Corp Class A's EBITDA

Cognizant Technology Solutions Corp Class A's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $3.5 billion.

The EBITDA is a measure of a Cognizant Technology Solutions Corp Class A's overall financial performance and is widely used to measure a its profitability.

Cognizant Technology Solutions Corp Class A financials

Revenue TTM	$19.4 billion
Operating margin TTM	15.29%
Gross profit TTM	$7 billion
Return on assets TTM	9.78%
Return on equity TTM	16.48%
Profit margin	11.6%
Book value	$29.14
Market Capitalization more info button	$38.8 billion

TTM: trailing 12 months

Cognizant Technology Solutions Corp Class A's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Cognizant Technology Solutions Corp Class A.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Cognizant Technology Solutions Corp Class A's total ESG risk score

Total ESG risk: 19.2

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Cognizant Technology Solutions Corp Class A's overall score of 19.2 (as at 12/31/2018) is pretty good – landing it in it in the 27th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Cognizant Technology Solutions Corp Class A is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Cognizant Technology Solutions Corp Class A's environmental score

Environmental score: 0.04/100

Cognizant Technology Solutions Corp Class A's environmental score of 0.04 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that Cognizant Technology Solutions Corp Class A is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Cognizant Technology Solutions Corp Class A's social score

Social score: 13.31/100

Cognizant Technology Solutions Corp Class A's social score of 13.31 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that Cognizant Technology Solutions Corp Class A is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Cognizant Technology Solutions Corp Class A's governance score

Governance score: 6.35/100

Cognizant Technology Solutions Corp Class A's governance score puts it squarely in the 1st percentile of companies rated in the same sector. That could suggest that Cognizant Technology Solutions Corp Class A is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Cognizant Technology Solutions Corp Class A's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Cognizant Technology Solutions Corp Class A scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Cognizant Technology Solutions Corp Class A has, for the most part, managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Cognizant Technology Solutions Corp Class A was last rated for ESG on: 2019-01-01.

Total ESG score	19.2
Total ESG percentile	26.96
Environmental score	0.04
Environmental score percentile	1
Social score	13.31
Social score percentile	1
Governance score	6.35
Governance score percentile	1
Level of controversy	2

Cognizant Technology Solutions Corp Class A stock dividends

Dividend payout ratio: 25.42% of net profits

Recently Cognizant Technology Solutions Corp Class A has paid out, on average, around 0% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Cognizant Technology Solutions Corp Class A shareholders could enjoy a 0% return on their shares, in the form of dividend payments. In Cognizant Technology Solutions Corp Class A's case, that would currently equate to about $1.2 per share.

While Cognizant Technology Solutions Corp Class A's payout ratio might seem fairly standard, it's worth remembering that Cognizant Technology Solutions Corp Class A may be investing much of the rest of its net profits in future growth.

Cognizant Technology Solutions Corp Class A's most recent dividend payout was on 26 November 2024. The latest dividend was paid out to all shareholders who bought their stocks by 18 November 2024 (the "ex-dividend date").

Have Cognizant Technology Solutions Corp Class A's stocks ever split?

Cognizant Technology Solutions Corp Class A's stocks were split on a 2:1 basis on 9 March 2014 . So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Cognizant Technology Solutions Corp Class A stocks – just the quantity. However, indirectly, the new 50% lower stock price could have impacted the market appetite for Cognizant Technology Solutions Corp Class A stocks, which in turn could have impacted Cognizant Technology Solutions Corp Class A's stock price.

Cognizant Technology Solutions Corp Class A stock price volatility

Over the last 12 months, Cognizant Technology Solutions Corp Class A's stocks have ranged in value from as little as $63.2902 up to $82.46. A popular way to gauge a stock's volatility is its "beta."

Beta is a measure of a stocks volatility in relation to the market. The market (NASDAQ average) beta is 1, while Cognizant Technology Solutions Corp Class A's is 1.052. This would suggest that Cognizant Technology Solutions Corp Class A's stocks are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).

Cognizant Technology Solutions Corp Class A overview

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology. The company provides customer experience, robotic process automation, analytics, and AI services in areas, such as digital lending, fraud detection, and next generation payments; the shift towards consumerism, outcome-based contracting, digital health, delivering integrated seamless, omni-channel, and patient-centered experience; and services that drive operational improvements in areas, such as clinical development, pharmacovigilance, and manufacturing, as well as claims processing, enrollment, membership, and billing to healthcare providers and payers, and life sciences companies, including pharmaceutical, biotech, and medical device companies. It offers solution to manufacturers, automakers, retailers and travel and hospitality companies, as well as companies providing logistics, energy and utility services; and digital content, business process improvement, technology modernization, and the creation of unified and compelling user experience services to communications, media and entertainment, education, and information services and technology companies. The company was incorporated in 1988 and is headquartered in Teaneck, New Jersey..

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Frequently asked questions

What percentage of Cognizant Technology Solutions Corp Class A is owned by insiders or institutions?
Currently 0.164% of Cognizant Technology Solutions Corp Class A stocks are held by insiders and 99.617% by institutions. How many people work for Cognizant Technology Solutions Corp Class A?
Latest data suggests 340,100 work at Cognizant Technology Solutions Corp Class A. When does the fiscal year end for Cognizant Technology Solutions Corp Class A?
Cognizant Technology Solutions Corp Class A's fiscal year ends in December. Where is Cognizant Technology Solutions Corp Class A based?
Cognizant Technology Solutions Corp Class A's address is: 300 Frank West Burr Boulevard, Teaneck, NJ, United States, 07666 What is Cognizant Technology Solutions Corp Class A's ISIN number?
Cognizant Technology Solutions Corp Class A's international securities identification number is: US1924461023 What is Cognizant Technology Solutions Corp Class A's CUSIP number?
Cognizant Technology Solutions Corp Class A's Committee on Uniform Securities Identification Procedures number is: 192446102

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