How Much Upside is Left in Cognizant (CTSH)? Wall Street Analysts Think 25.68%

Core Viewpoint - Cognizant (CTSH) shows potential for significant upside, with a mean price target of $85.5 indicating a 25.7% increase from the current price of $68.03 [1] Price Targets and Analyst Estimates - The mean estimate consists of 20 short-term price targets, with a standard deviation of $8.79, indicating variability among analysts [2] - The lowest estimate is $70.00, suggesting a 2.9% increase, while the highest estimate is $103.00, indicating a potential surge of 51.4% [2] - A low standard deviation signifies a high degree of agreement among analysts regarding price movement direction [9] Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about CTSH's earnings prospects, with a positive trend in earnings estimate revisions [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 0.2%, with one estimate moving higher and no negative revisions [12] - CTSH holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - While price targets are often sought after, they can mislead investors, as empirical research shows they rarely indicate actual stock price movements [7] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8] - Investors should treat price targets with skepticism and not rely solely on them for investment decisions [10]