Here's Why Cognizant (CTSH) is a Strong Momentum Stock

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [4][5][6][7] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [4] Growth Score - The Growth Score evaluates a company's financial health and future potential by analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score capitalizes on stock price trends, utilizing factors like one-week price changes and monthly earnings estimate changes to identify high-momentum stocks [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investing strategies [7] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8][9] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [11] - Stocks with a 3 (Hold) rank should also have A or B Scores to ensure potential upside [11] Company Spotlight: Cognizant Technology Solutions Corporation - Cognizant (CTSH) is a leading professional services company with a Zacks Rank of 2 (Buy) and a VGM Score of B [14] - CTSH has a Momentum Style Score of B, with shares increasing by 5.3% over the past four weeks, and upward revisions in earnings estimates by six analysts [15] - The Zacks Consensus Estimate for CTSH has risen by $0.04 to $4.66 per share, with an average earnings surprise of 7.1% [15][16]