Why Cognizant (CTSH) is a Top Momentum Stock for the Long-Term

Zacks Investment Research highlights Cognizant (CTSH) as a compelling momentum stock, currently holding a Zacks Rank #2 (Buy) and a VGM Score of B. CTSH shares have risen 1.4% in the past four weeks, supported by a Momentum Style Score of B, and the consensus EPS estimate for fiscal year 2025 has increased by $0.10 to $5.08 following upward revisions from seven analysts.

Analysis

Cognizant Technology Solutions (CTSH) is presented as a strong momentum investment, underpinned by a Zacks Rank #2 (Buy) and a favorable VGM Score of B. The company's stock has demonstrated positive short-term momentum, with shares appreciating 1.4% over the past four weeks, complemented by a Momentum Style Score of B. This positive outlook is further substantiated by upward revisions in earnings estimates for fiscal year 2025; specifically, seven analysts have revised their earnings per share (EPS) estimates upwards in the last 60 days, leading to an increase in the Zacks Consensus Estimate by $0.10 to $5.08 per share. Additionally, CTSH has a track record of outperforming earnings expectations, boasting an average earnings surprise of 6.4%. The Zacks methodology emphasizes that stocks with a #1 (Strong Buy) or #2 (Buy) rank, particularly when combined with Style Scores of A or B, have a higher probability of outperforming the market, positioning CTSH favorably based on these criteria.

Key Decisions for Investors

• Investors, particularly those with a momentum-focused strategy, should consider Cognizant (CTSH) due to its #2 (Buy) Zacks Rank, B-grade Momentum and VGM Style Scores, and recent positive earnings estimate revisions.
• Monitor ongoing changes to CTSH's Zacks Rank and Style Scores, as well as continued analyst earnings estimate revisions, as these are highlighted as key indicators of potential future performance.
• Given the 1.4% share price increase in the past four weeks and positive analyst sentiment, evaluate entry points in line with individual risk tolerance and portfolio allocation.