CTSH Stock Analysis: Buy, Sell, or Hold?
CTSH - Cognizant Technology Solutions
$61.87
0.95 (1.56%)
▲
5d:
+5.24%
30d:
+43.85%
90d:
+18.25%
WAIT
LOW Confidence
Analysis Updated: Aug 21, 2026 12:00 AM ET
Earnings: Jul 29, 2026
0d
Smart Money Distribution
Options positioning is turning defensive after a sharp run-up - a pattern consistent with institutional profit-taking. View Scanner →
Signal fired Aug 11, 2026 at $58.60 · last confirmed Aug 17, 2026
Strength: 6.9/10
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 MIXED SIGNALS: CTSH shows conflicting indicators. Wait for confirmation before entering.
📊 MIXED SIGNALS: CTSH shows conflicting indicators. Wait for confirmation before entering.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$91.34
Based on 7.0% avg growth
INTRINSIC VALUE TODAY
$56.71
Trading above historical range
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 10.3x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: CTSH is currently trading at $61.87, which is considered extended relative to its 30-day fair value range of $45.84 to $59.17. The stock's valuation (Forward PE: 9.8) is in line with its historical norms (10.3). Remarkably, the market is currently pricing in an annual earnings decline of 1.8% over the next few years. This pessimistic expectation contrasts with the company's recent 3.8% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, CTSH is in a strong downtrend. The price is approaching resistance at $63.11. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: CTSH scores 15/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, CTSH is in a strong downtrend. The price is approaching resistance at $63.11. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: CTSH scores 15/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$45.84 -
$59.17
Company Quality Score
32/100
(SELL)
Volume Confirmation
HIGH
Confidence Score
23.8%
Protect Your Profits
CTSH is technically overbought (RSI 73). Consider hedging now to protect against a potential pullback while keeping your upside.
View Profit Protection PlanAll Signals
- BEARISH: Price extended above range
- BEARISH: Weak technical setup (15/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($63.94)
- WARNING: Composite score 32/100 in the bottom quintile — this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$45.84 -
$59.17
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$56.37
Resistance Level
$63.11
Current Trend
Strong Downtrend
Technical data as of
Aug 21, 2026
Fundamental Context
Forward P/E (Next Year Est.)
9.80
Wall Street Target
$63.94
(+3.3%)
Revenue Growth (YoY)
4.5%
Earnings Growth (YoY)
3.8%
Profit Margin
10.3%
Valuation Discount vs History
-1.8% cheaper
PE vs Historical
9.8 vs 10.3
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-1.8%
(market-implied from PE analysis)
1-Year Target
$60.76
(-2%)
2-Year Target
$59.66
(-4%)
3-Year Target
$58.59
(-5%)
3-Yr Target (if PE normalizes)
(PE: 10→10)
$61.59
(-1%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.1, Growth: 10.1%)
$169.01
(+173%)
Base:
(SPY PE: 9.8, Growth: 10.1%)
$82.52
(+33%)
Bear:
(PE: 8.3, Growth: 10.1%)
$70.14
(+13%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (13x PE), but valuation improves significantly next year (10x PE) as earnings recover.
Trailing PE: 13.07 | Current EPS (TTM): $4.66
Bull Case
$90.80
(+47%)
Analyst growth 35.5%, PE expands to 14.4
Base Case
$82.54
(+33%)
Market implied 35.5%, PE stable at 13.1
Bear Case
$41.43
(-33%)
Severe decline -20.0%, PE contracts to 11.1
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 9.8 to 10.3
Stabilization Target:
$65.04
(+5.1%)
PE Expansion Potential:
+5.1%
Share & Embed Analysis
Last updated: August 22, 2026 1:09 PM ET
Data refreshes hourly during market hours. Next update: 2:09 PM
Data refreshes hourly during market hours. Next update: 2:09 PM
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Technical Signals Check
Is CTSH showing a specific setup today?
Insider Activity (6 Months)
2
Buys
3
Sells
Net
INSIDERS SELLING
Recent Transactions
Ro Khanna
SELL
2026-03-30
Kevin Hern
SELL
2026-03-17
Alina Kerdman
SELL
131 shares
2026-03-16
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Advanced CTSH Option Strategies
Professional options setups generated by AI based on today's CTSH price and gamma walls.
