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CTSHCognizant Technology Solutions Sell5.5·$53.87+1.23%
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Cognizant Technology Solutions (CTSH) Stock Analysis

Recovery setup

SellVALUE-TRAP 1/5High Confidence

Technology · Information Technology Services

Sell if holding. Multiple concerning factors at $53.87: Leverage penalty (D/E 7.2): -1.5; 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

$53.87+22.8% A.UpsideScore 5.5/10#15 of 34 Information Technology Services
QualityF-score8 / 9FCF yield7.58%
IncomeYield2.48%(5y avg 1.59%)Payout27.33%sustainable
Stop $49.28Target $65.05(analyst − 10%)A.R:R 1.5:1
Analyst target$72.28+34.2%27 analysts
$65.05our TP
$53.87price
$72.28mean
$93

Sell if holding. Multiple concerning factors at $53.87: Leverage penalty (D/E 7.2): -1.5; Sector modifier (Technology): -0.8. Chart setup: Death cross but MACD improving, RSI 56. Score 5.5/10, high confidence.

Passes 7/10 gates (positive momentum, favorable risk/reward ratio, clean insider activity, news boost analyst cluster(3), earnings proximity 51d clear, semi cycle peak clear, materials cycle peak clear). Fails on death cross (50MA < 200MA). Suitability: moderate.

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

Recent developments

updated 2026-06-09
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Wed, Jul 29, 202651d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (4/4)
Attractive valuation
Analyst upside: 23%
Risks
Sector modifier (Technology): -0.8
Leverage penalty (D/E 7.2): -1.5
Weak growth

Key Metrics

P/E (TTM)11.5
P/E (Fwd)8.6
Mkt Cap$25.2B
EV/EBITDA6.4
Profit Mgn10.4%
ROE14.9%
Rev Growth5.8%
Beta0.81
Dividend2.48%
Rating analysts37

Quality Signals

Piotroski F8/9

Options Flow

P/C39.39bearish
IV73%elevated

Material Events(8-K, last 90d)

  • 2026-02-26Item 5.02MEDIUM
    COGNIZANT TECHNOLOGY SOLUTIONS CORPORATION | By: | /s/ John Kim Name: | John Kim Title: | Chief Legal Officer, Chief Administrative Officer and Corporate Secretary Date: February 26, 2026
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers

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

Earnings Growth
2.7
Revenue Growth
3.9

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

52w Position
2.3
Support Resistance
3.7
Bollinger
4.0
GatesDeath cross (50MA < 200MA)Momentum 4.9<5.5 (soft — BUY_NOW allowed but watch)Executive change: officer departure/appointmentMomentum 4.9>=4.5A.R:R 1.5 ≥ 1.5Insider activity: OKNEWS BOOST ANALYST CLUSTER(3)EARNINGS PROXIMITY 51d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRecoverySuitability: Moderate
RSI
56 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $45.16Resistance $57.65

Price Targets

$49
$65
A.Upside+20.8%
A.R:R1.5:1

Position Sizing

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

Risk Alerts

! Death cross — 50-day MA below 200-day MA

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-07-29 (51d)

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?

Sell if holding. Multiple concerning factors at $53.87: Leverage penalty (D/E 7.2): -1.5; Sector modifier (Technology): -0.8. Chart setup: Death cross but MACD improving, RSI 56. Prior stop was $49.28. Score 5.5/10, high confidence.

What is the CTSH stock price target?

Take-profit target: $65.05 (+22.8% upside). Prior stop was $49.28. Stop-loss: $49.28.

What are the risks of investing in CTSH?

Sector modifier (Technology): -0.8; Leverage penalty (D/E 7.2): -1.5; Weak growth.

Is CTSH overvalued or undervalued?

Cognizant Technology Solutions trades at a P/E of 11.5 (forward 8.6). TrendMatrix value score: 8.5/10. Verdict: Sell.

What do analysts say about CTSH?

37 analysts cover CTSH with a consensus score of 3.6/5. Average price target: $72.

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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