Revisiting Cognizant
Cognizant Technology Solutions (CTSH) provides information technology, consulting, and business process outsourcing services worldwide. The company operates through four segments: Financial Services; Healthcare; Manufacturing, Retail, and Logistics; and Other.
[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'CTSH'" symbolprices="52" div_align="right"]
This is a good example of how Purple Chips works: CTSH shares were last sold in March 2014 at $53.45 ($107.00 pre-split) after gaining 69%.
One and half years later, we are buying the same shares at a lower price and more importantly at a lower valuation. CTSH is a TOP 20 Purple chip with an exceptional track record and a strong balance sheet.
Purple Chips 12 -18 month target: $69.00
LOW VALUATION IN COGNIZANT AT $51.89 (CTSH-US) HALF POSITION
PURPLE CHIPS TARGET: $69.00 POSITION SIZE: HALF (2.5%) P/E: 17.1X DIV: Nil MKT CAP: $31.9B Cash: $3B RETURN ON CAPITAL: 31.7% EARNINGS YIELD: 7.0% 5 YR EPS Growth rate*:15.0% P/E/G Ratio: 1.1X 2016 EPS: $3.06 2017 EST.: $3.90 2018 EST.: $4.46
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
