CTSH Stock Analysis: Buy, Sell, or Hold?
CTSH - Cognizant Technology Solutions
$61.06
1.33 (2.23%)
▲
5d:
-1.42%
30d:
-5.23%
90d:
-28.64%
BUY
HIGH Confidence
Analysis Updated: Mar 30, 2026 12:00 AM ET
Earnings: Apr 29, 2026
28d
Smart Money Distribution
CTSH is up 6.2% this week, but smart money is buying puts. Top strike: $65 2026-04-17 with 1,814 OI. Put ratio: 68% View Scanner →
Strength: 4.9/10
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: CTSH appears deeply undervalued. Market expects -8.1% annual earnings decline despite 22% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: CTSH appears deeply undervalued. Market expects -8.1% annual earnings decline despite 22% recent earnings growth. Contrarian opportunity at discount to historical valuation.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$106.42
Based on 6.3% avg growth
INTRINSIC VALUE TODAY
$66.08
7.6% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 12.8x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: CTSH is currently trading at $61.06, which is considered slightly low relative to its 30-day fair value range of $60.49 to $64.46. From a valuation perspective, the stock is trading at a discount (Forward PE: 9.9) compared to its historical average (12.8). Remarkably, the market is currently pricing in an annual earnings decline of 8.1% over the next few years. This pessimistic expectation contrasts with the company's recent 22.1% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, CTSH is in a strong downtrend. Immediate support is located at $58.84, while resistance sits at $63.02.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $87.58 (+43.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, CTSH is in a strong downtrend. Immediate support is located at $58.84, while resistance sits at $63.02.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $87.58 (+43.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Fair Price Range
$60.49 -
$64.46
Company Quality Score
61/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
79.5%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (45/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 43.4% below Wall St target ($87.58)
Fair Price Analysis
30-Day Fair Range
$60.49 -
$64.46
Current vs Fair Value
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$58.84
Resistance Level
$63.02
Current Trend
Strong Downtrend
Technical data as of
Mar 30, 2026
Fundamental Context
Forward P/E (Next Year Est.)
9.94
Wall Street Target
$87.58
(+43.4%)
Revenue Growth (YoY)
4.9%
Earnings Growth (YoY)
22.1%
Profit Margin
10.6%
Valuation Discount vs History
-8.1% cheaper
PE vs Historical
9.9 vs 12.8
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-8.1%
(market-implied from PE analysis)
1-Year Target
$56.11
(-8%)
2-Year Target
$51.57
(-16%)
3-Year Target
$47.39
(-22%)
3-Yr Target (if PE normalizes)
(PE: 10→13)
$61.03
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.4, Growth: 8.5%)
$175.56
(+188%)
Base:
(SPY PE: 9.9, Growth: 8.5%)
$78.07
(+28%)
Bear:
(PE: 8.4, Growth: 8.5%)
$66.36
(+9%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (14x PE), but valuation improves significantly next year (10x PE) as earnings recover.
Trailing PE: 13.61 | Current EPS (TTM): $4.56
Bull Case
$92.01
(+49%)
Analyst growth 34.8%, PE expands to 15.0
Base Case
$83.65
(+35%)
Market implied 34.8%, PE stable at 13.6
Bear Case
$42.21
(-32%)
Severe decline -20.0%, PE contracts to 11.6
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 9.9 to 12.8
Stabilization Target:
$78.64
(+28.8%)
PE Expansion Potential:
+28.8%
Share & Embed Analysis
Last updated: March 31, 2026 12:11 AM ET
Data refreshes hourly during market hours. Next update: 1:11 AM
Data refreshes hourly during market hours. Next update: 1:11 AM
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Technical Signals Check
Is CTSH showing a specific setup today?
Insider Activity (6 Months)
5
Buys
12
Sells
Net
INSIDERS SELLING
Recent Transactions
Alina Kerdman
SELL
131 shares
2026-03-16
Ro Khanna
BUY
2026-02-24
Ro Khanna
BUY
2026-02-17
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Advanced CTSH Option Strategies
Professional options setups generated by AI based on today's CTSH price and gamma walls.
