Cognizant Technology Solutions Stock Climbs 18% On An 8-Day Winning Streak
Cognizant Technology Solutions (CTSH) stock is on an 8-day winning streak, up 17.5% since the run began. That added about $4.8 billion to the company’s market value, which now stands at about $32.4 billion. The stock closed at $69.55 on Wednesday, October 21, 18.3% below its 52-week high of $85.16 and 80.6% above its low of $38.50.
How The Streak Stacks Up Against The S&P 500
Returns for CTSH and the S&P 500 over the streak and the periods around it, all ending Wednesday, October 21 and including dividends:
| Return Period | CTSH | S&P 500 |
|---|---|---|
| 1 Day | 2.0% | 0.6% |
| 8 Days (Current Streak) | 17.5% | -0.7% |
| 1 Month (21 Trading Days) | 18.5% | 0.0% |
| 3 Months (63 Trading Days) | 62.7% | 5.0% |
| Year To Date | -14.7% | 14.4% |
| 1 Year (252 Trading Days) | 6.6% | 16.5% |
Is This Move About Cognizant Technology Solutions Or The Market?
Over the same 8 trading days, the S&P 500 returned -0.7% including dividends, so the run is mostly Cognizant Technology Solutions’ own story rather than the market’s. 3 other S&P 500 stocks are currently on winning streaks of 8 days or longer. Over the past three months the stock is up 62.7%, a window that includes the streak; over the other 55 sessions of that window it was up 38.4%.
What The Numbers Say About The Rally
On the fundamentals, revenue grew 5.6% over the last twelve months, against a median of 17.9% for S&P 500 Information Technology stocks; its operating margin is 16.3%, versus a median of 21.6%; and the stock trades at 14.6 times trailing earnings against a median of 35.0. The read is mixed: a multiple below the median on one side, revenue growth below the median and margins below the median on the other.
If you are looking for strength with more behind it than a hot tape, our Guidance Momentum screen surfaces the names where management raised its own outlook.
One Hot Stock Is A Story. Thirty Sound Ones Are A Strategy
A streak like this earns a place on your watchlist, and it also earns a question: how much of your outcome do you want depending on one company keeping this up?
The Trefis High Quality (HQ) Portfolio answers it with breadth: roughly 30 businesses picked for consistent cash generation, strong margins, and balance-sheet strength, sized and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Follow the story; invest in the strategy.