Cognizant Technology Solutions Corporation (CTSH): A Strong Value Stock with Impressive Earnings Potential
Investing with confidence and maximizing returns in the stock market are common goals for both novice and experienced investors. To achieve these objectives, investors can rely on the Zacks Style Scores, a unique set of guidelines that rate stocks based on popular investing methodologies such as value, growth, and momentum. The Value Style Score, in particular, helps investors identify stocks that are trading at a discount to their true value. One such stock is Cognizant Technology Solutions Corporation (CTSH), a leading provider of technology and business services. The company offers a wide range of services, including application development and maintenance, infrastructure management, and business process outsourcing. Since the first quarter of fiscal 2022, Cognizant has reported strong financial results and has a strong presence in the global market. CTSH boasts a Value Style Score of A and a VGM Score of B+, and holds a Zacks Rank #2 (Buy) rating. The stock is trading at a forward earnings multiple of 14.5X, a PEG Ratio of 1.1, a Price/Cash Flow ratio of 10.3X, and a Price/Sales ratio of 1.6X. These ratios suggest that CTSH is trading at an attractive valuation. In addition to its impressive valuation fundamentals, CTSH has also seen its earnings estimates revised upwards in the last 60 days by several analysts. The Zacks Consensus Estimate has increased to $6.30 per share for 2025, with an average earnings surprise of 16.7%. This indicates that CTSH is likely to deliver strong earnings in the future. With its strong Value and VGM Style Scores, impressive earnings, and attractive valuation fundamentals, CTSH should be on investors' short list. It is a stock that offers both short-term and long-term potential for value-focused investors. If you want to stay up-to-date with the latest recommendations from Zacks Investment Research, you can download their free report on the 7 Best Stocks for the Next 30 Days. Click to get this free report now.
