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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 30853.15. 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 51.08 (with a change from open of 2.60%), this in conjunction with a target price of 65.86. Volume today has so far reached 4925502, with an average volume of about 5099.19. The GAP for this stock, is -0.38%.

The P/E ratio is 20.19, bringing the forward P/E to a value of 13.52. 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 -16.73%.

Looking further into the growth statistics for Cognizant Technology Solutions Corporation, EPS is looking like it will grow 9.54% 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 91.00%. Shares outstanding is 617.31, while shares float is at a value of 604.09. Float short for Cognizant Technology Solutions Corporation is 1.57% and the short ratio is 1.86.

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 1.51. Price/Sales ratio is at a value of 2.37, with Price/book ratio coming to 3.07 and Price/cash is 6.89, and finally Price/Free cash Flow is 18.6.

The simple moving averages are -7.76% and -12.23% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -26.81% and the 52 week low is 12.42%.

Cognizant Technology Solutions Corporation has a dividend yield of *TBA, with a current price of 51.08. 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 -1.81%, with performance for the month coming to -9.13%. Looking at the data for the quarter it is at a value of -15.20%, and for the half year the performance is -22.92%. Volatility for this week is 1.87% and for the month this is 2.39%.

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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