Cognizant (CTSH) is a Top-Ranked Growth Stock: Should You Buy?

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1] - The service includes daily updates, access to Zacks Rank, Zacks Industry Rank, and stock screening tools [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank [3] - Stocks receive an alphabetic rating from A to F, with A indicating the highest potential for market outperformance [4] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Cash Flow [4] Growth Score - The Growth Style Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Style Score assesses stocks based on price trends and earnings outlook, helping investors capitalize on upward or downward price movements [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios [8] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +23.86%, significantly outperforming the S&P 500 [9] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [10] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face price declines [11] Company Spotlight: Cognizant Technology Solutions Corporation - Cognizant (CTSH) is rated 3 (Hold) with a VGM Score of A, indicating potential for growth investors [12] - The company forecasts a year-over-year earnings growth of 7.2% for the current fiscal year, supported by upward revisions in earnings estimates [12][13] - The Zacks Consensus Estimate for CTSH has increased by $0.06 to $5.66 per share, with an average earnings surprise of +4.3% [13]