3 Reasons Growth Investors Will Love Cognizant (CTSH)

Core Viewpoint - Growth investors are attracted to stocks with above-average financial growth, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score helps identify promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Cognizant (CTSH) is currently recommended due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is crucial for attracting investor attention, with double-digit growth being particularly desirable [4] - Cognizant's projected EPS growth for this year is 10.6%, surpassing the industry average of 10.2% [5] Group 3: Asset Utilization - The asset utilization ratio indicates how efficiently a company generates sales from its assets [6] - Cognizant's S/TA ratio is 1.04, outperforming the industry average of 0.93, indicating higher efficiency [6] Group 4: Sales Growth - Sales growth is another important metric, with Cognizant expected to achieve a 6.7% sales growth this year, compared to the industry average of 5.6% [7] Group 5: Earnings Estimate Revisions - Trends in earnings estimate revisions correlate strongly with stock price movements [8] - Cognizant has seen a 1.8% upward revision in current-year earnings estimates over the past month [9] Group 6: Overall Positioning - Cognizant has a Growth Score of B and a Zacks Rank 2, positioning it well for potential outperformance in the growth investing space [11]