Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the IT Services industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued IT Services Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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3 Undervalued IT Services Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the IT Services industry for Thursday, March 12, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the IT Services industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Cognizant Technology Solutions Corporation’s Value Grade

Value Grade:

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and 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 provides services including artificial intelligence (AI) and other technology services and solutions, consulting, application development, systems integration, quality engineering and assurance, engineering research and development, application maintenance, infrastructure, security, and business process services and automation. It also offers AI-led automation, which includes advisory, and process and IT automation solutions designed to simplify and accelerate automation adoption; business process outsourcing services, which help deliver business outcomes including revenue growth, increased customer and employee satisfaction, and cost savings; and Cognizant Moment, a digital experience service that uses AI to reimagine customer experiences and engineer strategies aimed at driving growth. In addition, the company develops, licenses, implements, and supports proprietary and third-party software products and platforms; and develops industry-specific products and services. It offers solution to healthcare providers and payers, life sciences companies, banking, capital markets, payments and insurance companies, manufacturers, automakers, retailers, consumer goods, travel and hospitality, communications, media and entertainment, education, information services, and technology companies, as well as businesses providing logistics, energy, and utility services. The company has a strategic partnership with Uniphore Technologies Inc. for the development of AI solutions that combine small language models and AI agents. Cognizant Technology Solutions Corporation was incorporated in 1988 and is headquartered in Teaneck, New Jersey.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Cognizant Technology Solutions Corporation has a Value Score of 74, which is considered to be undervalued.

When you look at Cognizant Technology Solutions Corporation’s price-to-sales ratio at 1.44 compared to the industry median at 1.45, this company has a lower price relative to revenue compared to its peers. This could make Cognizant Technology Solutions Corporation’s stock more attractive for value investors.

Cognizant Technology Solutions Corporation’s price-earnings ratio is 13.70 compared to the industry median at 20.90. This means it has a lower share price relative to earnings compared to its peers. This could make Cognizant Technology Solutions Corporation more attractive for value investors.

Now, let’s assess Cognizant Technology Solutions Corporation’s EV/EBITDA ratio, also known as enterprise multiple. At 8.8, when compared to the industry median of 17.2, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Cognizant Technology Solutions Corporation’s shareholder yield is higher than its industry median ratio of (2.90%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Cognizant Technology Solutions Corporation’s price-to-book ratio is lower than its industry median ratio of 2.40. This could make Cognizant Technology Solutions Corporation more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Cognizant Technology Solutions Corporation’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Cognizant Technology Solutions Corporation’s price-to-free-cash-flow ratio is higher than its industry median ratio of 13.90. This could make Cognizant Technology Solutions Corporation less attractive because the higher P/FCF ratio indicates that Cognizant Technology Solutions Corporation is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

CGI Inc.’s Value Grade

Value Grade:

CGI Inc. provides information technology and business process services in Western and Southern Europe, the United States, Canada, Scandinavia, Northwest and Central-East Europe, the United Kingdom, Australia, Germany, Finland, Poland, Baltics, and the Asia Pacific. It offers end-to-end services and solutions, including business and strategic IT consulting; systems integration, such as data integration, AI and automation integration, cloud integration, Internet of Things, enterprise application integration, application programming interface integration, and legacy system modernization; managed IT and business process; and application services comprising application management, DevSecOps, application modernization and rationalization, and quality engineering and assurance. The company also provides infrastructure services, which include legacy infrastructure modernization, cloud and hybrid infrastructure management, IT service management, FinOps-enabled cloud management, cyber resilience and compliance, site reliability engineering and AIOps, and infrastructure-as-code; and intellectual property business solutions. It serves banking and capital markets, communications and media, energy and utilities, government, health, insurance, life sciences, manufacturing, retail and consumer services, space, transportation, and logistics industries. The company was formerly known as CGI Group Inc. and changed its name to CGI Inc. in January 2019. CGI Inc. was founded in 1976 and is headquartered in Montreal, Canada.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

CGI Inc. has a Value Score of 75, which is considered to be undervalued.

CGI Inc.’s price-earnings ratio is 13.4 compared to the industry median at 20.9. This means that it has a lower price relative to its earnings compared to its peers. This makes CGI Inc. more attractive for value investors.

CGI Inc.’s price-to-book ratio is higher than its peers. This could make CGI Inc. less attractive for value investors when compared to the industry median at 2.40.

You can read more about CGI Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

SharonAI Holdings Inc.’s Value Grade

Value Grade:

SharonAI Holdings Inc. operates as a computing company specializing in accelerated compute platforms, AI infrastructure, and cloud GPU environments. It operates through a hybrid model that combines deployment in data centers with the development of its data-center facilities in strategic locations. Its platform integrates compute, storage, networking, and automation into a unified enterprise solution serving AI labs, hyperscale customers, research institutions, and regulated industries. The company was formerly known as Roth CH Holding Inc. SharonAI Holdings Inc. was founded in 2024 and is based in New York, New York.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

SharonAI Holdings Inc. has a Value Score of 82, which is considered to be undervalued.

SharonAI Holdings Inc.’s price-to-book ratio is higher than its peers. This could make SharonAI Holdings Inc. less attractive for value investors when compared to the industry median at 2.40.

You can read more about SharonAI Holdings Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other IT Services Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about IT Services stocks as well as other industrys.

Choosing Which of the 3 Best IT Services Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Cognizant Technology Solutions Corporation stock has a Value Grade of B.
• CGI Inc. stock has a Value Grade of B.
• SharonAI Holdings Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 3 undervalued stocks in the IT Services industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About IT Services Stocks

Want to learn more about IT Services stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 3 Undervalued IT Services Stocks for Thursday, March 12
• Is Accenture plc (ACN) Overvalued?
• Is International Business Machines Corporation (IBM) Overvalued?
• Is Shopify Inc. (SHOP) Overvalued?

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.