CTSH vs. WIT: Which Stock Is the Better Value Option?
CognizantCognizant(US:CTSH) ZACKS·2024-11-01 16:45

Core Viewpoint - The article compares Cognizant (CTSH) and Wipro Limited (WIT) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Estimates - Cognizant has a Zacks Rank of 2 (Buy), while Wipro has a Zacks Rank of 3 (Hold), indicating that CTSH is likely experiencing a more favorable earnings outlook [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that CTSH is in a better position for value investors [2][3] Group 2: Valuation Metrics - CTSH has a forward P/E ratio of 16.11, significantly lower than WIT's forward P/E of 24.22, indicating that CTSH may be undervalued [5] - The PEG ratio for CTSH is 2.09, while WIT's PEG ratio is 4.38, suggesting that CTSH has a more favorable growth outlook relative to its valuation [5] - CTSH's P/B ratio is 2.56 compared to WIT's P/B of 3.46, further supporting the argument that CTSH is more attractively valued [6] Group 3: Overall Conclusion - Based on stronger estimate revision activity and more attractive valuation metrics, CTSH is deemed the superior option for value investors at this time [7]

Cognizant-CTSH vs. WIT: Which Stock Is the Better Value Option? - Reportify