Cognizant Technology Solutions Corporation (CTSH), headquartered in Teaneck, New Jersey, a professional services company, provides consulting and technology, and outsourcing services. With a market cap of $40 billion, the company focuses on technology strategy consulting, complex systems development, enterprise software package implementation and maintenance, data warehousing, and business intelligence.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and CTSH perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the information technology services industry. Cognizant is at the forefront of technological innovation with digital services like AI, cloud, data modernization, and IoT. The company integrates these services into clients' legacy systems for seamless transitions to modern operations. Through strategic investments, reskilling of teams, and key acquisitions, Cognizant enhances its service offerings and global reach. Its global delivery model, with teams in strategic locations, provides clients with onshore and offshore services, diversifying its client base and mitigating risks.

Despite its notable strength, CTSH slipped 11.2% from its 52-week high of $90.82, achieved on Feb. 14. Over the past three months, CTSH stock has declined 2.2%, underperforming the Vanguard Information Technology Index ETF’s (VGT) 14.8% gains during the same time frame.

In the longer term, shares of CTSH rose 4.9% on a YTD basis and climbed 20.4% over the past 52 weeks, outperforming VGT’s YTD gains of 1.2% and 12.5% returns over the last year.

To confirm the bullish trend, CTSH has been trading above its 50-day and 200-day moving averages since early May.

On Apr. 30, CTSH shares closed up marginally after reporting its Q1 results. Its adjusted EPS of $1.23 exceeded Wall Street expectations of $1.19. The company’s revenue was $5.12 billion, topping Wall Street forecasts of $5.07 billion. CTSH expects full-year adjusted EPS in the range of $4.98 to $5.14, and expects revenue to be between $20.5 billion and $21 billion.

CTSH’s rival, Gartner, Inc. (IT) lagged behind the stock with a 14.7% downtick on a YTD basis and 4.7% losses over the past 52 weeks.

Wall Street analysts are moderately bullish on CTSH’s prospects. The stock has a consensus “Moderate Buy” rating from the 23 analysts covering it, and the mean price target of $88.21 suggests a potential upside of 9.4% from current price levels.