CTSH Stock Analysis: Buy, Sell, or Hold?
CTSH - Cognizant Technology Solutions
$82.06
-0.39 (-0.47%)
▼
BUY
HIGH Confidence
Last Updated: January 30, 2026
Earnings: Feb 04, 2026
3d
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: CTSH shows strong fundamentals and good volume confirmation. Solid entry point despite oversold pricing.
✅ BUY SIGNAL: CTSH shows strong fundamentals and good volume confirmation. Solid entry point despite oversold pricing.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$108.67
Based on 5.6% avg growth
INTRINSIC VALUE TODAY
$67.47
Trading above fair value
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 14.7x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: CTSH is currently trading at $82.06, which is considered oversold relative to its 30-day fair value range of $82.92 to $85.60. The stock's valuation (Forward PE: 14.6) is in line with its historical norms (14.7). Remarkably, the market is currently pricing in an annual earnings decline of 0.1% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, CTSH is in a strong uptrend. The price is currently testing key support at $81.43. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $90.92 (+10.3%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, CTSH is in a strong uptrend. The price is currently testing key support at $81.43. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $90.92 (+10.3%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Fair Price Range
$82.92 -
$85.60
Company Quality Score
61/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
77.1%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($90.92)
Fair Price Analysis
30-Day Fair Range
$82.92 -
$85.60
Current vs Fair Value
OVERSOLD
Support & Resistance Levels
Support Level
$81.43
Resistance Level
$85.93
Current Trend
Strong Uptrend
Fundamental Context
Forward P/E (Next Year Est.)
14.64
Wall Street Target
$90.92
(+10.3%)
Revenue Growth (YoY)
7.4%
Earnings Growth (YoY)
-52.1%
Profit Margin
10.2%
Valuation Discount vs History
-0.1% cheaper
PE vs Historical
14.6 vs 14.7
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-0.1%
(market-implied from PE analysis)
1-Year Target
$82.37
(0%)
2-Year Target
$82.29
(0%)
3-Year Target
$82.20
(0%)
3-Yr Target (if PE normalizes)
(PE: 15→15)
$82.53
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: 7.2%)
$154.73
(+88%)
Base:
(SPY PE: 14.6, Growth: 7.2%)
$101.59
(+23%)
Bear:
(PE: 12.4, Growth: 7.2%)
$86.36
(+5%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (19x PE), but valuation improves significantly next year (15x PE) as earnings recover.
Trailing PE: 19.28 | Current EPS (TTM): $4.32
Bull Case
$119.44
(+46%)
Analyst growth 30.3%, PE expands to 21.2
Base Case
$108.58
(+32%)
Market implied 30.3%, PE stable at 19.3
Bear Case
$56.64
(-31%)
Severe decline -20.0%, PE contracts to 16.4
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 14.6 to 14.7
Stabilization Target:
$82.78
(+0.4%)
PE Expansion Potential:
+0.4%
Last updated: January 31, 2026 2:02 AM ET
Data refreshes hourly during market hours. Next update: 3:02 AM
Data refreshes hourly during market hours. Next update: 3:02 AM
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Technical Signals Check
Is CTSH showing a specific setup today?
Insider Activity (6 Months)
1
Buys
1
Sells
0
Net
NEUTRAL
Recent Transactions
Ro Khanna
SELL
2025-09-29
Ro Khanna
BUY
2025-08-26
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Professional options setups generated by AI based on today's CTSH price and gamma walls.
