Three IT Services Stocks That May Be Worth Watching
This week, we use AAII’s A+ Investor Stock Grades to provide insight into three information technology (IT) services stocks.
Rosalio Madrigal
Stock Evaluator: Cognizant Technology Solutions Corporation (CTSH)
Cognizant Technology Solutions Corporation CTSH
$57.44
0.60
1.06%
September 30, 2026 4:00:00 PM
EST
Volume: 9,468,828
After Hours: $120.37
0.15
|
0.12%
November 10, 2021 7:59 PM
EST
Volume: 72,713
USD
NASD | DELAYED PRICE
| SECTOR | INDUSTRY |
| Information Technology | IT Services |
A+ Stock Grade Summary:
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COMPANY SUMMARY
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.
Commentary & Analysis
Worst-Performing S&P Composite 1500 Stocks at Midpoint 2026
Many of the largest declines occurred in software, IT services and enterprise application companies as investors favored businesses supplying the semiconductor, memory and data-center ecosystem.
John Bajkowski
Choice Stocks From AAII’s Model Portfolios: The Platinum 30
A diversified sample of stocks that grade highly on the compelling factors used in our different strategies.
Charles Rotblut
Why Cognizant Technology Solutions Corporation’s (CTSH) Stock Is Up 5.39%
As of Monday, May 18, Cognizant Technology Solutions Corporation’s CTSH share price has surged by 5.39%, which has investors questioning if this is right time to sell.Cynthia McLaughlin
What You Need to Know About Cognizant Technology Solutions Corporation's Q2 Earnings
Cognizant Technology Solutions Corporation's fiscal Q2 earnings report was released on Wednesday, April 29. Let's dive in to see if (CTSH) missed or beat analyst's expectations.Michael Rose
Financial Summary
| Share Statistics | CTSH | Industry Median |
Percentile (All Stocks) |
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| Market Cap (Mil) | $25,603.2 | $916.2 | 89% |
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| Shares Out (Mil) | 466.0 | 45.4 | 88% |
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| Institutional Ownership | 99.9% | 73.9% | 96% |
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| Float (Mil) | 449.1 | 39.0 | 84% |
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| Beta | 0.81 | 0.92 | 48% |
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| Avg Daily Volume (000s) | 6,541 | 665 | 93% |
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| Price Change (52-week) |
(15.1%) | 52.3% | 39% |
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| Growth | CTSH | Industry Median |
Percentile (All Stocks) |
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| Sales (5yr) | 4.9% | 7.6% | 36% |
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| Net Income (5yr) | 9.9% | 4.0% | 55% |
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| EPS (5yr) | 12.2% | 10.2% | 51 |
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| Dividends (5yr) | 7.4% | 0.0% | 83% |
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| Cash Flow (5yr) | 69.1% | (16.1%) | 97% |
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| Estimates | Qtrly | Current Fiscal Year |
Next Fiscal Year |
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| # of Estimates | 22 | 28 | 28 | |
| Current EPS | $1.466 | $5.743 | $6.332 | |
| Month Ago EPS | $1.464 | $5.736 | $6.315 | |
| # Rev Up | 1 | 1 | 0 | |
| # Rev Down | 1 | 0 | 1 | |
| Three Months Ago EPS | $1.465 | $5.695 | $6.180 | |
| Year/Year Chg | 7.8% | 25.9% | 51.3% | |
| Financials | CTSH | Industry Median |
Percentile (All Stocks) |
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| Sales (TTM) (Mil) | $21,642 | $576 | 92% |
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| Net Income (TTM) (Mil) | $2,220 | ($1) | 92% |
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| EPS (TTM) | $4.654 | $0.000 | 85% |
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| Operating Cash Flow (TTM) (Mil) | $2,917 | $50 | 91% |
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| Net Cash Flow (TTM) (Mil) | ($758) | $1 | 4% |
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| Long-Term Debt (Q1) (Mil) | $1,916 | $97 | 74% |
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| Enterprise Value (Q1) (Mil) | $29,448 | $1,276 | 88% |
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| Valuation | CTSH | Industry Median |
Percentile (All Stocks) |
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| P/B | 1.78 | 2.13 | 48% |
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| P/E | 12.2 | 19.4 | 29% |
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| Dividend Yield | 2.3% | 0.0% | 78% |
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| PEG (5yr hist) | 1.0 | 1.5 | 47% |
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| Ratios | CTSH | Industry Median |
Percentile (All Stocks) |
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| Gross Margin | 33.4% | 34.6% | 40% |
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| Net Margin | 10.3% | (0.1%) | 64% |
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| ROA | 10.8% | (0.6%) | 88% |
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| ROE | 14.9% | 4.0% | 70% |
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| Liabilities to Assets | 30.6% | 51.3% | 22% |
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| F-Score | 4 | 4 | 33% |
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Passing Stock Screens
As of 9/29/2026, from a list of 60 stock screening strategies,
GURU STRATEGY
Weiss Blue Chip Div Yield Screen
Factors: Yield, Value, Quality
A conservative, blue-chip investment style with a value approach that emphasizes selecting stocks with favorable dividend yields.
| Performance Since Inception: | 9.1% |
| +/- S&P 500: | +1.6 |
GURU STRATEGY
Graham--Defensive Investor (Non-Utility) Screen
Factors: Yield, Value, Quality
Credited as one of the fathers of in-depth security analysis, Graham's approach focuses on the concept of intrinsic value.
| Performance Since Inception: | 11.7% |
| +/- S&P 500: | +4.2 |
GURU STRATEGY
Graham--Enterprising Investor Revised
Factors: Yield, Value, Quality, Industry/Sector
Credited as one of the fathers of in-depth security analysis, Graham's approach focuses on the concept of intrinsic value.
| Performance Since Inception: | 14.0% |
| +/- S&P 500: | +6.5 |
