Summary
The Momentum Growth Quotient for the company is 12.20, which is 23.97% higher than the average for the S&P 100.
Shares present a forward rate of return of 17.41% at the current price.
The company's expertise in providing AI solutions to its customer base will help it deepen existing client relationships and gain new market share.
ChartMasterPro upward target price of $83.00.
Target return for my options trade is 133%.
Shares of Cognizant Technology Solutions Corp (CTSH) are down 7.13% since peaking on July 12, 2018, and in my opinion, the shares of this IT business provider are a strong buy at current price levels. The company has a solid history of generating outstanding earnings growth, and the future growth ratios point to continued growth over the next twelve months. I lay out my bullish argument for the company below by reviewing some pertinent fundamental and technical aspects of the stock.
Momentum Growth Quotient
My MGQ plays a critical part when it comes to determining if I am going to go long or short a stock. Generally, I only want to go long a stock with an MGQ higher than that of the S&P 100, and I want to go short a stock with an MGQ lower than that of the index (for a more detailed explanation of how I calculate the MGQ please see my BlogPost).
As of the end of August 2018, the MGQ for the S&P 100 was 9.84.
The current MGQ for CTSH stands at 12.20, which implies a 23.97% higher growth rate compared to the S&P 100. This tells us that CTSH has strong future growth potential and is a good candidate for a long position.
