Cognizant Technology Solutions (NASDAQ: CTSH)
QVI Research Report | Updated Coverage | December 2023
Summary:
Cognizant Technology Solutions Corporation has produced a timely, profitable, and enduring business model by helping clients become data-enabled and data-driven in the digital era.
The company’s current wealth analysis uncovers bullish ratings in its value proposition, returns on management, and enterprise downside risks.
The stock price’s present value suggests that its shares are trading at a reasonable price.
QVI maintains its Expanded Stock Picks coverage rating of Cognizant Technology Solutions in this updated research report.
When referencing this research report, access your Quality Value Investing (QVI) Glossary of Investing Terms and Metric Targets. Unless noted, all data presented is sourced from Seeking Alpha Premium as of the market close on December 19, 2023, and intended for illustration only.
The 42 holdings in the QVI Real-Time Stock Picks portfolio have collectively achieved alpha for 14 years by focusing research and analysis on a company’s current wealth and its share price’s present value. In other words, just the facts without unreliable predictive analysis typical of the buyside or the business modeling overkill of sell-side Wall Street analysts.
In this updated QVI Research Report, we’ll look at the Expanded Real-Time Stock Picks tech sector holding Cognizant Technology Solutions Corporation to see if it continues to meet Quality Value Investing’s active portfolio inclusion criteria based on our checklist analysis of the business’s current wealth and its stock’s present value.
Cognizant: Company Current Wealth
To uncover the current wealth of the company, QVI defines the value proposition, measures select returns on management and assesses enterprise downside risks.
Value Proposition
QVI Research Report’s value proposition section provides a brief synopsis of the company’s business model, major-exchange listing, stock symbol, market capitalization, and dividend-paying status. In addition, it defines the competitive advantages of a company’s products or services to its customers compared to the industry, including the stock’s historical performance vs. the sector and market.
Cognizant Technology Solutions $CTSH is a dividend-paying mid-cap stock in the information technology sector’s consulting and services industry. CTSH was added to QVI Real-Time Stock Picks on November 29, 2022, at a split and dividend-adjusted $58.84 a share.
Cognizant Technology Solutions Corporation, a professional services company, provides consulting, 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 offers customer experience enhancement, 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, omnichannel, 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 also provides solutions to manufacturers, automakers, retailers, and travel and hospitality companies, as well as companies providing logistics, energy, and utility services; and digital content, the creation of personalized user experience, and acceleration of digital engineering services to communications, media and entertainment, education, and information services and technology companies. The company has a strategic partnership with ServiceNow, Inc. to accelerate the adoption of AI-driven automation across industries.
Cognizant Technology Solutions was founded in 1994 and is headquartered in Teaneck, New Jersey, USA.
QVI’s value proposition elevator pitch for Cognizant Technology Solutions:
Cognizant has produced a timely, profitable, and enduring business model by helping clients from a representative majority of global healthcare, financial services, media, and internet companies become data-enabled and data-driven in the digital era.
Due Diligence Resources
For a more in-depth analysis of the all-important value proposition, visit Cognizant’s investor relations webpage and its most recent Form 10-K Annual Report submitted to the US Securities and Exchange Commission or SEC.
Performance vs. Sector and Market
The chart below illustrates Cognizant’s performance against the Technology Select Sector SPDR® Fund ETF (NYSE: XLK) and the SPDR® S&P 500 ETF Trust (NYSE: SPY) since being added to the QVI Portfolios on November 29, 2022. CTSH has outperformed the broader market but underperformed its sector led by the Magnificant 7 techs, including AAPL, GOOGL, MSFT, and NVDA, during its first 13 months as a QVI holding.
QVI’s value proposition rating for Cognizant Technology Solutions: Bullish.
Next, we’ll look at the company’s returns on management and enterprise downsize risks, the share price’s present value, and the investment thesis.