Cognizant Technology Solutions Corp. (NASDAQ:CTSH)

CAPS Rating: 5 out of 5

The Company is a provider of custom IT consulting and technology services as well as outsourcing services for Global 2000 companies located in North America, Europe and Asia.


Player Avatar tutaemeia (86.26) Submitted: 3/10/2009 8:40:29 AM : Outperform Start Price: $9.20 CTSH Score: +178.09

Cognizant is an indian outsourcing information technology (IT) consulting and technology services, as well as outsourcing services in North America, Europe, and Asia = cheap and profitable business. This mean that CTSH use cheap handwork to sell services at high level of prices. Apart fo the rela business, that i think have everything to win, check the financial ratios: no debt, lots of cash (current ratio of 3,8x), 1trly earnings growth (yoy) of 16,7%, ROE of 25,09% and profit margin of 15,3%. The only thing that worries me is the P/B of 2,68x. Maybe the stock could have a further correction but still, today buying CTSH it seems a good bet for the long run!

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