This article discusses the performance of Cognizant Technology Solutions (NASDAQ:CTSH) over the past year and examines its underlying fundamentals. While the stock has delivered a 16% gain over the past year, it has only seen a 4.5% increase in the last three years. The article suggests that the market isn’t judging the company based on earnings growth, as its earnings per share has actually dropped 8.4% in the past year. The article also notes that the 1.5% dividend yield may not be enough to entice buyers. Revenue has been stable, but further research is needed to explain the share price rise.
The article highlights that Cognizant Technology Solutions is a well-known stock with plenty of analyst coverage, suggesting visibility into future growth. The article concludes that while the stock has performed well over the past year, with a 16% total shareholder return, it is worth watching in the long term for potential growth. The article advises investors to check insider transactions and provides a link to a list of growing companies that insiders are buying. It also mentions that the market returns quoted in the article reflect the market-weighted average returns of stocks trading on American exchanges.