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CTSHCognizant Technology Solutions Buy Wait5.8·$66.36
Buy WaitModerate Confidence
Investment thesis

A perfect 4/4 earnings beat streak, forward earnings multiple of 8.2x, and a risk/reward ratio of 4.0-to-1 in your favor make this a fundamentally attractive setup — but a confirmed downtrend with a death cross acting as a hard block on entry, compounded by a put/call ratio of 6.67 and 13% short interest, means the favorable geometry cannot be acted upon until momentum conditions clear.

Thesis pillars

  • Leverage And Growth Constraints↑Improving
  • Deep Value Perfect Beat Streak→Stable
  • Confirmed Downtrend Death Cross→Stable
  • +1 more pillar — see the Why tab for full reasoning

Pillars as of Jul 3, 2026, based on the 10-K filed Feb 12, 2026

Full reasoning →

Open full analysis

Cognizant Technology Solutions (CTSH) Stock Analysis

Breakout setup

Buy WaitVALUE-TRAP 2/5ValueQualityModerate Confidence

Technology · Information Technology Services

Earnings today — results expected after close (2026-10-29). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Wait for pullback to $61.50. Price sits above the model's entry target of $61.50; the risk/reward becomes favorable on a pullback. Key risks: Analyst target reached - limited upside remaining; Sector modifier (Technology): -0.8.

Cognizant is one of the world's leading professional services companies, engineering modern businesses and delivering strategic outcomes for our clients. We help clients modernize technology, reimagine processes and transform experiences so they can stay ahead in today's... Read more

$66.36-6.6% A.UpsideScore 5.8/10#12 of 44 Information Technology Services
QualityF-score9 / 9FCF yield7.06%
IncomeYield1.99%(5y avg 1.62%)Payout27.53%sustainable
Entry $61.50(Ma50 Sticky)Stop $57.20Analyst target $61.98(reached)A.R:R -0.4:1
Analyst consensus$68.86+3.8%25 analysts
$66.36price
$68.86mean
$47
$93

Wait for pullback to $61.50. Price sits above the model's entry target of $61.50; the risk/reward becomes favorable on a pullback. Key risks: Analyst target reached - limited upside remaining; Sector modifier (Technology): -0.8. Chart setup: Golden cross, above all MAs, RSI 64, MACD bullish. Earnings today. Wait until post-earnings. Score 5.8/10, moderate confidence.

Passes 5/7 gates (positive momentum, clean insider activity, no SEC red flags, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 0d<=7d. Suitability: moderate.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-10-29
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Oct 29, 2026Earnings today — results expected after close· next earnings call

Thesis

Rewards
Attractive valuation
Margin of safety: 43%
Risks
Analyst target reached - limited upside remaining
Sector modifier (Technology): -0.8
Weak growth

Key Metrics

P/E (TTM)14.3
P/E (Fwd)10.5
Mkt Cap$31.4B
EV/EBITDA7.7
Profit Mgn10.3%
ROE14.9%
Rev Growth4.5%
Beta0.85
Dividend1.99%
Rating analysts36

Quality Signals

Piotroski F9/9MoatNarrow

Options Flow

P/C0.53bullish
IV64%elevated
Max Pain$43-36.0% vs spot

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy

Show full disclosure ▾

About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.

Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.

No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security.

No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.

Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Earnings Growth
2.8
Revenue Growth
3.6
GatesA.R:R -0.4=NEGATIVEEARNINGS PROXIMITY 0d<=7dMomentum 5.6>=5.5Insider activity: OKNo SEC red flagsSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARBreakoutSuitability: Moderate
RSI
64 · Neutral
↑ 20D MA↑ 50D MA↑ 200D MAGOLDEN CROSSSupport $54.70Resistance $73.92

Price Targets

A.Upside-6.6%
A.R:R-0.4:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Target reached (-6.6% upside)
! Earnings today - binary event risk
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-10-29 (Earnings today — results expected after close)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is CTSH stock a buy right now?

Wait for pullback to $61.50. Price sits above the model's entry target of $61.50; the risk/reward becomes favorable on a pullback. Key risks: Analyst target reached - limited upside remaining; Sector modifier (Technology): -0.8. Chart setup: Golden cross, above all MAs, RSI 64, MACD bullish. Earnings today. Wait until post-earnings. Analyst target $61.98 reached (−6.6%), stop $57.20 (−16.0%), A.R:R -0.4:1. Score 5.8/10, moderate confidence.

What is the CTSH stock price target?

Analyst target $61.98 reached (−6.6% from $66.36); no take-profit level is published. Analyst target $61.98 reached (−6.6%), stop $57.20 (−16.0%), A.R:R -0.4:1. Stop-loss: $57.20.

What are the risks of investing in CTSH?

Analyst target reached - limited upside remaining; Sector modifier (Technology): -0.8; Weak growth.

Is CTSH overvalued or undervalued?

Cognizant Technology Solutions trades at a P/E of 14.3 (forward 10.5). TrendMatrix value score: 7.4/10. Verdict: Buy (Wait for Entry).

What do analysts say about CTSH?

36 analysts cover CTSH with a consensus score of 3.7/5. Average price target: $69.

What does Cognizant Technology Solutions do?Cognizant is one of the world's leading professional services companies, engineering modern businesses and delivering...

Cognizant is one of the world's leading professional services companies, engineering modern businesses and delivering strategic outcomes for our clients. We help clients modernize technology, reimagine processes and transform experiences so they can stay ahead in today's fast-changing world, where AI is reshaping organizations in every field.

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