Cognizant Technology Solutions Corp.  (CTSH) Trade Now »     Rate CTSH  -  Discuss CTSH  -  Add to Watch List        

I used a stock screener to find a list of good stocks then did some homework to come up with the pick.

Traders at Palma are Neutral on CTSH

www.palmaresearch.com/default.aspx?viewreport=CTSH

Cognizant Technology Solutions (CTSH) has some of the most impressive financials of any stock you’re likely to see. Recently, the company’s earnings growth rate has dropped from about 50% to a year, to just 19% for the last earnings report (Call Transcript). The stock, however, has plunged by over 60% since early 2007.

Here’s a chart showing the stock price (blue line, left scale) and the earnings-per-share (gold line, right scale). The two axes are scaled at a ratio of 50-to-1 which means that when the lines cross, the P/E ratio is 50. Using 50 is obviously a very high multiple. But as

Excerpts from Gilford Securities analyst Ashish R. Thadhani's recent note to clients on Cognizant Technology Solutions (CTSH):

• • •

Congizant (CTSH) this morning posted better-than-expected Q3 results.

For the quarter, the IT outsourcing company posted revenue of $734.7 million and GAAP profits of 38 cents a share; that beat the Street consensus at $722.6 million and 37 cents.

Cognizant sees Q4 revenue of at least $746.7 million and profits of at least 38 cents a share; the Street has been looking for $751 million and 38 cents. For the full year, the company still sees revenue of at least $2.81 billion and GAAP profits of at least $1.45 a share. The Street consensus has been $2.8 billion and $1.44.

The company said the gui

I have no idea is today’s big move is the first surge in a larger rally, or simply a knee-jerk recovery from last week’s huge sell-off, but what I do know is that it is nice to have a day when everything is flashing green. As I write this, about 2.5 hours into the trading day, the Nasdaq Composite is up more than 100 points, and more than 6%.

In an extension of the bargain-hunting mentality which actually began on Friday, most tech stocks are trading higher; some of them are a lot higher.

Here’s a list of some key tech stocks sporting gains of at least 10% on the session:

• Microsoft (MSFT): U