Cognizant Technology Solutions Stock Price Prediction

CTSH Stock  USD 73.44  0.18  0.24%   
As of 28th of March 2024, the relative strength index (RSI) of Cognizant Technology's share price is approaching 43 suggesting that the stock is in nutural position, most likellhy at or near its support level. The main point of RSI analysis is to track how fast people are buying or selling Cognizant Technology, making its price go up or down.

Oversold Vs Overbought

43

 
Oversold
 
Overbought
Cognizant Technology stock price prediction is an act of determining the future value of Cognizant Technology shares using few different conventional methods such as EPS estimation, analyst consensus, or fundamental intrinsic valuation. The successful prediction of Cognizant Technology's future price could yield a significant profit. Please, note that this module is not intended to be used solely to calculate an intrinsic value of Cognizant Technology and does not consider all of the tangible or intangible factors available from Cognizant Technology's fundamental data. We analyze noise-free headlines and recent hype associated with Cognizant Technology Solutions, which may create opportunities for some arbitrage if properly timed.
Below are the key fundamental drivers impacting Cognizant Technology's stock price prediction:
Quarterly Earnings Growth
0.107
EPS Estimate Next Quarter
1.09
EPS Estimate Current Year
4.62
EPS Estimate Next Year
5
Wall Street Target Price
78.22
It is a matter of debate whether stock price prediction based on information in financial news can generate a strong buy or sell signal. We use our internally-built news screening methodology to estimate the value of Cognizant Technology based on different types of headlines from major news networks to social media. The Cognizant stock price prediction module provides an analysis of price elasticity to changes in media outlook on Cognizant Technology over a specific investment horizon. Using Cognizant Technology hype-based prediction, you can estimate the value of Cognizant Technology Solutions from the perspective of Cognizant Technology response to recently generated media hype and the effects of current headlines on its competitors. We also analyze overall investor sentiment towards Cognizant Technology using Cognizant Technology's stock options and short interest. It helps to benchmark the overall future attitude of investors towards Cognizant using crowd psychology based on the activity and movement of Cognizant Technology's stock price.

Cognizant Technology Short Interest

A significant increase or decrease in Cognizant Technology's short interest from the previous month could be a good indicator of investor sentiment towards Cognizant. Short interest can provide insight into the potential direction of Cognizant Technology stock and how bullish or bearish investors feel about the market overall. An investor who is long Cognizant Technology may also wish to track short interest. As short interest increases, investors should be becoming more worried about Cognizant Technology and may potentially protect profits, hedge Cognizant Technology with its derivative instruments, or be ready for some potential downside.
200 Day MA
70.882
Short Percent
0.0216
Short Ratio
2.48
Shares Short Prior Month
9.5 M
50 Day MA
76.864

Cognizant Technology Hype to Price Pattern

Investor biases related to Cognizant Technology's public news can be used to forecast risks associated with an investment in Cognizant. The trend in average sentiment can be used to explain how an investor holding Cognizant can time the market purely based on public headlines and social activities around Cognizant Technology Solutions. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Some investors profit by finding stocks that are overvalued or undervalued based on market sentiment. The correlation of Cognizant Technology's market sentiment to its price can help taders to make decisions based on the overall investors consensus about Cognizant Technology.

Cognizant Technology Implied Volatility

    
  19.1  
Cognizant Technology's implied volatility exposes the market's sentiment of Cognizant Technology Solutions stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Cognizant Technology's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Cognizant Technology stock will not fluctuate a lot when Cognizant Technology's options are near their expiration.
This module is based on analyzing investor sentiment around taking a position in Cognizant Technology. This speculative approach is based exclusively on the idea that markets are driven by emotions such as investor fear and greed. The fear of missing out, i.e., FOMO, can cause potential investors in Cognizant Technology to buy its stock at a price that has no basis in reality. In that case, they are not buying Cognizant because the equity is a good investment, but because they need to do something to avoid the feeling of missing out. On the other hand, investors will often sell stocks at prices well below their value during bear markets because they need to stop feeling the pain of losing money.

Cognizant Technology after-hype prediction price

    
  USD 73.62  
There is no one specific way to measure market sentiment using hype analysis or a similar predictive technique. This prediction method should be used in combination with more fundamental and traditional techniques such as stock price forecasting, technical analysis, analysts consensus, earnings estimates, and various momentum models.

Prediction based on Rule 16 of the current Cognizant contract

Based on the Rule 16, the options market is currently suggesting that Cognizant Technology Solutions will have an average daily up or down price movement of about 1.19% per day over the life of the 2024-04-19 option contract. With Cognizant Technology trading at USD 73.44, that is roughly USD 0.88 . If you think that the market is fully incorporating Cognizant Technology's daily price movement you should consider acquiring Cognizant Technology Solutions options at the current volatility level of 19.1%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
  
Check out Cognizant Technology Basic Forecasting Models to cross-verify your projections.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Cognizant Technology's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Intrinsic
Valuation
LowRealHigh
72.3573.5974.85
Details
Naive
Forecast
LowNextHigh
70.2571.5072.74
Details
30 Analysts
Consensus
LowTargetHigh
65.9372.4580.42
Details
Earnings
Estimates (0)
LowProjected EPSHigh
1.061.101.16
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Cognizant Technology. Your research has to be compared to or analyzed against Cognizant Technology's peers to derive any actionable benefits. When done correctly, Cognizant Technology's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Cognizant Technology.

Cognizant Technology After-Hype Price Prediction Density Analysis

As far as predicting the price of Cognizant Technology at your current risk attitude, this probability distribution graph shows the chance that the prediction will fall between or within a specific range. We use this chart to confirm that your returns on investing in Cognizant Technology or, for that matter, your successful expectations of its future price, cannot be replicated consistently. Please note, a large amount of money has been lost over the years by many investors who confused the symmetrical distributions of Stock prices, such as prices of Cognizant Technology, with the unreliable approximations that try to describe financial returns.
   Next price density   
       Expected price to next headline  

Cognizant Technology Estimiated After-Hype Price Volatility

In the context of predicting Cognizant Technology's stock value on the day after the next significant headline, we show statistically significant boundaries of downside and upside scenarios based on Cognizant Technology's historical news coverage. Cognizant Technology's after-hype downside and upside margins for the prediction period are 72.37 and 74.87, respectively. We have considered Cognizant Technology's daily market price in relation to the headlines to evaluate this method's predictive performance. Remember, however, there is no scientific proof or empirical evidence that news-based prediction models outperform traditional linear, nonlinear models or artificial intelligence models to provide accurate predictions consistently.
Current Value
73.44
73.62
After-hype Price
74.87
Upside
Cognizant Technology is very steady at this time. Analysis and calculation of next after-hype price of Cognizant Technology is based on 3 months time horizon.

Cognizant Technology Stock Price Prediction Analysis

Have you ever been surprised when a price of a Company such as Cognizant Technology is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Cognizant Technology backward and forwards among themselves. Have you ever observed a lot of a particular company's price movement is driven by press releases or news about the company that has nothing to do with actual earnings? Usually, hype to individual companies acts as price momentum. If not enough favorable publicity is forthcoming, the Stock price eventually runs out of speed. So, the rule of thumb here is that as long as this news hype has nothing to do with immediate earnings, you should pay more attention to it. If you see this tendency with Cognizant Technology, there might be something going there, and it might present an excellent short sale opportunity.
Expected ReturnPeriod VolatilityHype ElasticityRelated ElasticityNews DensityRelated DensityExpected Hype
  0.03 
1.24
 0.00  
  0.02 
12 Events / Month
6 Events / Month
In about 12 days
Latest traded priceExpected after-news pricePotential return on next major newsAverage after-hype volatility
73.44
73.62
0.00 
1,033  
Notes

Cognizant Technology Hype Timeline

Cognizant Technology is currently traded for 73.44. The entity stock is not elastic to its hype. The average elasticity to hype of competition is -0.02. Cognizant is projected not to react to the next headline, with the price staying at about the same level, and average media hype impact volatility is over 100%. The immediate return on the next news is projected to be very small, whereas the daily expected return is currently at -0.03%. %. The volatility of related hype on Cognizant Technology is about 176.2%, with the expected price after the next announcement by competition of 73.42. About 98.0% of the company shares are held by institutions such as insurance companies. The book value of Cognizant Technology was currently reported as 26.56. The company has Price/Earnings To Growth (PEG) ratio of 1.28. Cognizant Technology last dividend was issued on the 16th of February 2024. The entity had 2:1 split on the 10th of March 2014. Given the investment horizon of 90 days the next projected press release will be in about 12 days.
Check out Cognizant Technology Basic Forecasting Models to cross-verify your projections.

Cognizant Technology Related Hype Analysis

Having access to credible news sources related to Cognizant Technology's direct competition is more important than ever and may enhance your ability to predict Cognizant Technology's future price movements. Getting to know how Cognizant Technology rivals react to changing market sentiment, related social signals, and mainstream news is a great way to find investing opportunities and time the market. The summary table below summarizes the essential lagging indicators that can help you analyze how Cognizant Technology may potentially react to the hype associated with one of its peers.
Hype
Elasticity
News
Density
Semi
Deviation
Information
Ratio
Potential
Upside
Value
At Risk
Maximum
Drawdown
BURLBurlington Stores(2.54)10 per month 1.17  0.09  3.26 (2.26) 9.75 
HMYHarmony Gold Mining(0.09)5 per month 1.89  0.08  8.24 (3.44) 16.29 
MTXMinerals Technologies(0.12)10 per month 1.19  0.04  2.51 (2.10) 6.49 
FSIFlexible Solutions International(0.03)9 per month 1.97  0.04  4.84 (3.06) 18.94 
HIHOHighway Holdings Limited 0.01 4 per month 1.01 (0.05) 2.45 (2.00) 6.47 
JILLJJill Inc(2.65)7 per month 2.75  0.06  3.38 (4.32) 12.90 
EGOEldorado Gold Corp(0.02)11 per month 2.82  0.0009  4.23 (5.22) 13.70 
SUMSummit Materials(0.19)12 per month 1.79  0.04  3.28 (3.66) 8.86 

Cognizant Technology Additional Predictive Modules

Most predictive techniques to examine Cognizant price help traders to determine how to time the market. We provide a combination of tools to recognize potential entry and exit points for Cognizant using various technical indicators. When you analyze Cognizant charts, please remember that the event formation may indicate an entry point for a short seller, and look at other indicators across different periods to confirm that a breakdown or reversion is likely to occur.

About Cognizant Technology Predictive Indicators

The successful prediction of Cognizant Technology stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Cognizant Technology Solutions, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Cognizant Technology based on analysis of Cognizant Technology hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Cognizant Technology's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Cognizant Technology's related companies.
 2021 2022 2023 2024 (projected)
Price Earnings Ratio21.8812.9417.9433.68
Short Term Coverage Ratios10.7114.1112.5313.15

Story Coverage note for Cognizant Technology

The number of cover stories for Cognizant Technology depends on current market conditions and Cognizant Technology's risk-adjusted performance over time. The coverage that generates the most noise at a given time depends on the prevailing investment theme that Cognizant Technology is classified under. However, while its typical story may have numerous social followers, the rapid visibility can also attract short-sellers, who usually are skeptical about Cognizant Technology's long-term prospects. So, having above-average coverage will typically attract above-average short interest, leading to significant price volatility.

Cognizant Technology Short Properties

Cognizant Technology's future price predictability will typically decrease when Cognizant Technology's long traders begin to feel the short-sellers pressure to drive the price lower. The predictive aspect of Cognizant Technology Solutions often depends not only on the future outlook of the potential Cognizant Technology's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. Cognizant Technology's indicators that are reflective of the short sentiment are summarized in the table below.
Common Stock Shares Outstanding505 M
Cash And Short Term Investments2.6 B
When determining whether Cognizant Technology offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cognizant Technology's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cognizant Technology Solutions Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cognizant Technology Solutions Stock:

Complementary Tools for Cognizant Stock analysis

When running Cognizant Technology's price analysis, check to measure Cognizant Technology's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cognizant Technology is operating at the current time. Most of Cognizant Technology's value examination focuses on studying past and present price action to predict the probability of Cognizant Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cognizant Technology's price. Additionally, you may evaluate how the addition of Cognizant Technology to your portfolios can decrease your overall portfolio volatility.
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Is Cognizant Technology's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cognizant Technology. If investors know Cognizant will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cognizant Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.107
Dividend Share
1.17
Earnings Share
4.21
Revenue Per Share
38.323
Quarterly Revenue Growth
(0.02)
The market value of Cognizant Technology is measured differently than its book value, which is the value of Cognizant that is recorded on the company's balance sheet. Investors also form their own opinion of Cognizant Technology's value that differs from its market value or its book value, called intrinsic value, which is Cognizant Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cognizant Technology's market value can be influenced by many factors that don't directly affect Cognizant Technology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cognizant Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cognizant Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cognizant Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.