Top Stock #3 – Cognizant Tech Solutions (CTSH)
Cognizant Tech Solutions (CTSH) is a leading IT firm that provides a wide array of data and software services to businesses around the world. The company enjoys big margins because most of Cognizant Tech’s software development centers and employees are located in India. Outsourcing has been big business as corporations in the developed world look to cut costs, and CTSH is really cashing in on this trend.
In February, CTSH posted very impressive profit and revenue, and raised guidance for 2010 above Wall Street estimates. Specifically, CTSH earned $144 million or 47 cents per share on the quarter. That’s up 28% from $112.3 million or 38 cents per share a year earlier. Revenue also jumped 20% to $902.7 million. These are great results that indicate Cognizant is a strong investment right now.
I rate CTSH a strong buy.
- Poll of the Day