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

Cognizant Technology Solutions Corporation (CTSH) is positioned as a top growth stock, earning a Zacks Rank #2 (Buy) and an 'A' VGM Score, with a 'B' Growth Style Score. The professional services firm is projected to achieve 10.5% year-over-year earnings growth for the current fiscal year, supported by five recent analyst upgrades for fiscal 2025 that have increased the Zacks Consensus Estimate to $5.25 per share. CTSH also boasts an average earnings surprise of 5.8%, suggesting it warrants investor consideration.

Analysis

Cognizant Technology Solutions (CTSH) presents as a strong growth prospect, holding a Zacks Rank #2 (Buy) and an 'A' VGM Score, complemented by a 'B' Growth Style Score. The company is projected to achieve a 10.5% year-over-year earnings growth for the current fiscal year, signaling robust fundamental health and future potential. This positive outlook is further reinforced by recent analyst activity.

Five analysts have collectively revised their earnings estimates higher for CTSH's fiscal 2025 within the past 60 days, leading to a $0.10 increase in the Zacks Consensus Estimate to $5.25 per share. This upward trend in analyst expectations indicates growing confidence in the company's profitability trajectory. Moreover, CTSH has consistently delivered an average earnings surprise of +5.8%, demonstrating a reliable track record of exceeding market forecasts.

The combination of a strong Zacks Rank and top-tier Style Scores (VGM 'A', Growth 'B') aligns with Zacks' methodology for identifying stocks with a high probability of market outperformance. This confluence of positive indicators positions CTSH as a noteworthy candidate for investors focused on growth-oriented opportunities, supported by both fundamental strength and positive analyst sentiment.

Key Decisions for Investors

• Investors should consider evaluating CTSH for inclusion in growth-oriented portfolios, given its Zacks Rank #2 (Buy), 'A' VGM Score, and 'B' Growth Style Score.
• Pay close attention to the recent upward revisions in fiscal 2025 earnings estimates and the consistent +5.8% average earnings surprise as indicators of sustained positive operational momentum.
• Monitor future analyst revisions and upcoming earnings reports for continued validation of the company's projected 10.5% year-over-year earnings growth, which could further solidify its investment thesis.