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Here's Why Cognizant (CTSH) is a Strong Value Stock

Zacks Equity Research
·2-min read

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

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Cognizant (CTSH)

Headquartered in Teaneck, NJ, Cognizant Technology Solutions Corporation is a leading professional services company. The company was spun off from Dun & Bradstreet in 1996 and went public in 1998.

CTSH sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Business - Software Services industry's P/E of 22.6X, shares of Cognizant are trading at a forward P/E of 13.6X. CTSH also has a PEG Ratio of 1.2, a Price/Cash Flow ratio of 11.9X, and a Price/Sales ratio of 1.7X.

Many value investors pay close attention to a company's earnings as well. For CTSH, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $4.55 per share for 2022. Per share CTSH boasts an average earnings surprise of 3.8%.

Investors should take the time to consider CTSH for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.


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Cognizant Technology Solutions Corporation (CTSH) : Free Stock Analysis Report
 
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Zacks Investment Research