Cognizant (CTSH) Soars 1.51% on Upgrade, Earnings

Cognizant Technology Solutions (CTSH) has seen a 0.16% increase, marking its third consecutive day of gains, with a total rise of 1.51% over the past three days.

The strategy of buying CTSH shares after they reached a recent high and holding for one week resulted in a 20.83% return over the past five years, compared to a benchmark return of 44.90%, with an excess return of -24.07%. The strategy's CAGR was 8.37%, with a Sharpe ratio of 0.38, a maximum drawdown of -21.88%, and a volatility of 22.08%. It underperformed the benchmark significantly and exhibited considerable risk, making it less attractive for long-term investors.

On May 19, 2025, JP Morgan analyst Tien-Tsin Huang upgraded Cognizant Tech Solutions (CTSH) from a "Neutral" rating to "Overweight," which is a significant factor affecting CTSH's stock price. Additionally, JPMorgan increased the price target to $98 from $88, reflecting positive growth expectations.

Cognizant Technology Solutions also reported strong earnings for the start of 2025, with an EPS of $1.23, surpassing the forecast of $1.20. These factors contribute to a positive outlook for CTSH's stock.