Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, IT consulting company Cognizant Technology Solutions
With that in mind, let's take a closer look at Cognizant's business, and see what CAPS investors are saying about the stock right now.
Cognizant facts
Headquarters (founded) |
Teaneck, N.J. (1994) |
Market Cap |
$5.53 billion |
Industry |
IT consulting and other services |
TTM Revenue |
$2.82 billion |
Management |
President/CEO Francisco D'Souza (since 2007) |
Return on Equity (average, last three years) |
26.2% |
Competitors |
IBM |
CAPS members bullish on CTSH also bullish on: |
Google |
CAPS members bearish on CTSH also bearish on: |
General Motors |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 873 of the 903 members who have rated Cognizant -- or 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include MarkRunta and All-Star FoolSolo.
In late December, MarkRunta wrote about Cognizant's strong competitive position: "One of the key players in the IT outsourcing space with a great business model and proven track record."
In a pitch from earlier this month, FoolSolo tapped the stock as possibly too cheap to pass up:
I've been watching Cognizant repeatedly come up on my value, growth and rule breaker screens, but I've stayed away because I just don't know enough about their business model. I'm still not sure, but with the market down, Cognizant's growth history, and their really crazy low PEG ratio, it looks too enticing.
Fundamentally and financially, the company passes with flying colors. No debt, cash on hand, good cashflow, and an impressive history of sales, revenue and earnings growth. Downside risk looks pretty limited, compared to the upside potential. I like the odds.
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