Cognizant Technology Solutions Stock Probability of Future Stock Price Finishing Over 73.29

CTSH Stock  USD 73.29  0.33  0.45%   
Cognizant Technology's implied volatility is one of the determining factors in the pricing options written on Cognizant Technology Solutions. Implied volatility approximates the future value of Cognizant Technology based on the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in Cognizant Technology Solutions over a specific time period. For example, 2024-04-19 CALL at $72.5 is a CALL option contract on Cognizant Technology's common stock with a strick price of 72.5 expiring on 2024-04-19. The contract was last traded on 2024-03-28 at 15:55:00 for $1.9 and, as of today, has 21 days remaining before the expiration. The option is currently trading at a bid price of $1.05, and an ask price of $1.95. The implied volatility as of the 29th of March is 19.78. View All Cognizant options

Closest to current price Cognizant long CALL Option Payoff at Expiration

Cognizant Technology's future price is the expected price of Cognizant Technology instrument. It is based on its current growth rate as well as the projected cash flow expected by the investors. This tool provides a mechanism to make assumptions about the upside potential and downside risk of Cognizant Technology Solutions performance during a given time horizon utilizing its historical volatility. Check out Cognizant Technology Backtesting, Cognizant Technology Valuation, Cognizant Technology Correlation, Cognizant Technology Hype Analysis, Cognizant Technology Volatility, Cognizant Technology History as well as Cognizant Technology Performance.
  
As of now, Cognizant Technology's Price Earnings Ratio is increasing as compared to previous years. The Cognizant Technology's current Price To Operating Cash Flows Ratio is estimated to increase to 26.11, while Price To Sales Ratio is projected to decrease to 1.87. Please specify Cognizant Technology's target price for which you would like Cognizant Technology odds to be computed.

Cognizant Technology Target Price Odds to finish over 73.29

The tendency of Cognizant Stock price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
Current PriceHorizonTarget PriceOdds to move above the current price in 90 days
 73.29 90 days 73.29 
about 92.3
Based on a normal probability distribution, the odds of Cognizant Technology to move above the current price in 90 days from now is about 92.3 (This Cognizant Technology Solutions probability density function shows the probability of Cognizant Stock to fall within a particular range of prices over 90 days) .
Given the investment horizon of 90 days the stock has the beta coefficient of 1.05 suggesting Cognizant Technology Solutions market returns are responsive to returns on the market. As the market goes up or down, Cognizant Technology is expected to follow. Additionally Cognizant Technology Solutions has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming NYSE Composite.
   Cognizant Technology Price Density   
       Price  

Predictive Modules for Cognizant Technology

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Cognizant Technology. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Cognizant Technology's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Hype
Prediction
LowEstimatedHigh
72.0573.2974.53
Details
Intrinsic
Valuation
LowRealHigh
65.9674.5875.82
Details
Naive
Forecast
LowNextHigh
70.4371.6772.91
Details
30 Analysts
Consensus
LowTargetHigh
65.9372.4580.42
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Cognizant Technology. Your research has to be compared to or analyzed against Cognizant Technology's peers to derive any actionable benefits. When done correctly, Cognizant Technology's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Cognizant Technology.

Cognizant Technology Risk Indicators

For the most part, the last 10-20 years have been a very volatile time for the stock market. Cognizant Technology is not an exception. The market had few large corrections towards the Cognizant Technology's value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold Cognizant Technology Solutions, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of Cognizant Technology within the framework of very fundamental risk indicators.
α
Alpha over NYSE Composite
-0.17
β
Beta against NYSE Composite1.05
σ
Overall volatility
2.02
Ir
Information ratio -0.13

Cognizant Technology Alerts and Suggestions

In today's market, stock alerts give investors the competitive edge they need to time the market and increase returns. Checking the ongoing alerts of Cognizant Technology for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for Cognizant Technology can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.
Cognizant Technology generated a negative expected return over the last 90 days
Cognizant Technology is unlikely to experience financial distress in the next 2 years
Over 98.0% of the company shares are held by institutions such as insurance companies
On 28th of February 2024 Cognizant Technology paid $ 0.3 per share dividend to its current shareholders
Latest headline from zacks.com: Cognizant Renews Relationship With Pon Holdings IT Arm

Cognizant Technology Price Density Drivers

Market volatility will typically increase when nervous long traders begin to feel the short-sellers pressure to drive the market lower. The future price of Cognizant Stock often depends not only on the future outlook of the current and potential Cognizant Technology's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. Cognizant Technology's indicators that are reflective of the short sentiment are summarized in the table below.
Common Stock Shares Outstanding505 M
Cash And Short Term Investments2.6 B

Cognizant Technology Technical Analysis

Cognizant Technology's future price can be derived by breaking down and analyzing its technical indicators over time. Cognizant Stock technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of Cognizant Technology Solutions. In general, you should focus on analyzing Cognizant Stock price patterns and their correlations with different microeconomic environments and drivers.

Cognizant Technology Predictive Forecast Models

Cognizant Technology's time-series forecasting models is one of many Cognizant Technology's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models are widely used for non-stationary data. Non-stationary data are called the data whose statistical properties, e.g., the mean and standard deviation, are not constant over time, but instead, these metrics vary over time. This non-stationary Cognizant Technology's historical data is usually called time series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the stock market movement and maximize returns from investment trading.

Things to note about Cognizant Technology

Checking the ongoing alerts about Cognizant Technology for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Cognizant Technology help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
Cognizant Technology generated a negative expected return over the last 90 days
Cognizant Technology is unlikely to experience financial distress in the next 2 years
Over 98.0% of the company shares are held by institutions such as insurance companies
On 28th of February 2024 Cognizant Technology paid $ 0.3 per share dividend to its current shareholders
Latest headline from zacks.com: Cognizant Renews Relationship With Pon Holdings IT Arm
When determining whether Cognizant Technology offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cognizant Technology's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cognizant Technology Solutions Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cognizant Technology Solutions Stock:

Complementary Tools for Cognizant Stock analysis

When running Cognizant Technology's price analysis, check to measure Cognizant Technology's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cognizant Technology is operating at the current time. Most of Cognizant Technology's value examination focuses on studying past and present price action to predict the probability of Cognizant Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cognizant Technology's price. Additionally, you may evaluate how the addition of Cognizant Technology to your portfolios can decrease your overall portfolio volatility.
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Is Cognizant Technology's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cognizant Technology. If investors know Cognizant will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cognizant Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.107
Dividend Share
1.17
Earnings Share
4.21
Revenue Per Share
38.323
Quarterly Revenue Growth
(0.02)
The market value of Cognizant Technology is measured differently than its book value, which is the value of Cognizant that is recorded on the company's balance sheet. Investors also form their own opinion of Cognizant Technology's value that differs from its market value or its book value, called intrinsic value, which is Cognizant Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cognizant Technology's market value can be influenced by many factors that don't directly affect Cognizant Technology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cognizant Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cognizant Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cognizant Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.