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Cognizant Technology Solutions Corporation (NASDAQ: CTSH) – Is this large market cap stock undervalued?

Cognizant Technology Solutions Corporation (NASDAQ: CTSH), is firmly in the large market cap category with market cap of 33314.94. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Cognizant Technology Solutions Corporation is 54.89 (with a change from open of 0.73%), this in conjunction with a target price of 66.77. Volume today has so far reached 5011700, with an average volume of about 4205.77. The GAP for this stock, is 0.17%.

The P/E ratio is 22.18, bringing the forward P/E to a value of 14.84. The current EPS for Cognizant Technology Solutions Corporation, is 2.48, with a EPS growth for this year coming to a value of 12.70%. Performance has been interesting with performance year to date coming to -8.55%.

Looking further into the growth statistics for Cognizant Technology Solutions Corporation, EPS is looking like it will grow 9.66% in the next year. Looking even further it is projected to be 13.37%. Quarter over quarter is -39.40% for EPS growth and for sales growth quarter over quarter it is 9.20%. Looking at past EPS growth statistics we see that for the past five years it has been 17.40%. Sales growth for the past five years has in fact been 22.00%.

Looking at the ownership, we see that the insider ownership is at 0.30% and institutional ownership is 90.90%. Shares outstanding is 606.94, while shares float is at a value of 604.09. Float short for Cognizant Technology Solutions Corporation is 1.37% and the short ratio is 1.97.

In terms of debt, long term debt/equity is 0.09, while the total debt/equity comes to 0.09. The ability to meet these debts, means that the current ratio is 3.7, and the quick ratio is 3.7. The most recent gross margin is 40.10% and their operating margin is 17.30%. The profit margin is 11.70%.

Cognizant Technology Solutions Corporation has seen returns on assets of 11.80%, and on investment, 15.20%. Return on equity is 16.10%. Price/Earnings to growth ratio is 1.66. Price/Sales ratio is at a value of 2.56, with Price/book ratio coming to 3.37 and Price/cash is 7.43, and finally Price/Free cash Flow is 20.09.

The simple moving averages are -3.64% and -6.50% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -21.36% and the 52 week low is 7.17%.

Cognizant Technology Solutions Corporation has a dividend yield of *TBA, with a current price of 54.89. The ability to pay this means the payout ratio is 0.00%. This is in an industry, Business Software & Services, with equally high dividends from other companies in this sector, which it is Technology. Cognizant Technology Solutions Corporation is based in USA.

Performance in the Business Software & Services industry means that Cognizant Technology Solutions Corporation has seen performance for the past week of 2.69%, with performance for the month coming to -5.12%. Looking at the data for the quarter it is at a value of -3.85%, and for the half year the performance is -9.39%. Volatility for this week is 1.45% and for the month this is 1.75%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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