Should I Buy CTSH Stock in 2026?

Data-driven analysis and honest assessment for Cognizant Technology Solutions Corp Class A

Analysis Updated:
CAUTIONSeveral concerns warrant careful consideration

Current Price: $85.23P/E: 19.7

Decision Score

5.3/10

Hold

Based on 6 fundamental factors

Score Breakdown:

Valuation (20%)7/10

Reasonable P/E of 19.7

Growth (20%)3/10

Declining -0%

Profitability (20%)4/10

Thin margins (0% net)

Financial Health (15%)5/10

Financial health data limited

Cash Flow (15%)8/10

Strong FCF yield of 6.4%

Insider Activity (10%)5/10

No recent insider activity

Key Investment Metrics

Current Price

$85.23

P/E Ratio

19.74

Revenue Growth

0.1%

Profit Margin

0.1%

Market Cap

$41.6B

Dividend Yield

0.01%

How CTSH Compares to Competitors

Understanding how CTSH stacks up against peers helps inform your investment decision.

How CTSH Compares to Peers

Upcoming Events for CTSH

+5 Reasons TO Buy CTSH

1. High free cash flow yield of 6.4%

moderate

FCF yield above 5% means substantial cash generation for dividends, buybacks, or reinvestment.

-5 Reasons NOT to Buy CTSH

1. Thin profit margins of 0.1%

high risk

Low margins provide little cushion against cost increases or pricing pressure.

2. Minimal revenue growth

low risk

Growth of 0.1% barely keeps pace with inflation.

Who Should Buy CTSH?

Investment Profile

Risk Level

Medium

Recommended Holding Period

3-5 years

Best For:

    Not Suitable For:

    • Growth Investors

      Limited 0% growth may disappoint

    • Income-Focused Retirees

      Low 0.0% yield

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    Frequently Asked Questions

    What is CTSH stock price today?

    CTSH (Cognizant Technology Solutions Corp Class A) stock is trading at $85.23 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).

    Is CTSH stock going up or down today?

    CTSH stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.

    Should I buy CTSH stock now?

    The decision to buy CTSH depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.

    Is CTSH a buy, hold, or sell right now?

    Our AI-powered analysis provides buy/hold/sell recommendations for CTSH based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.

    Is CTSH stock overvalued or undervalued?

    CTSH currently trades at a P/E ratio of 19.74 relative to earnings. Our DCF calculator provides intrinsic value estimates to help determine if CTSH is fairly priced.

    What is CTSH's P/E ratio?

    CTSH has a price-to-earnings (P/E) ratio of 19.74, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.

    What is CTSH's market cap?

    CTSH (Cognizant Technology Solutions Corp Class A) has a market capitalization of $41.64 billion, making it a mid-cap stock.

    What is CTSH's price to book ratio?

    CTSH trades at a price-to-book (P/B) ratio of 2.76, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.

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    Disclaimer

    This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.