Good MorningEquity markets retreated on Tuesday following a hotter-than-expected reading of the Consumer Price Index. The gauge of consumer inflation was hot on a month-to-month basis and accelerated compared to last year, putting hopes the FOMC would cut interest this spring to rest. The takeaway is that inflation is cooler than before but still running hot with the support of services sector growth and labor market strength. In this environment, it is unlikely the FOMC will cut rates until there is a weakening in the labor market, which is ultimately bad for the economy.
Tomorrow's data may accelerate the sell-off. January Retail Sales are expected to fall compared to last year but may surprise the market. Retail strength aligns with healthy labor markets, consumer demand and inflation, and weakness with recession; the data will not be good news either way. Weak data would confirm weakening in the consumer and cracks in the economy that could lead to recession. Featured: This is the #1 Stock to Buy for the AI Tidal Wave (Chaikin Analytics) 
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Real estate investing isn't only for millionaires — retail investors can get a shot at investing in major commercial real estate endeavors by investing in REITs. Specialty REITs help investors refine their investment preferences by capitalizing on tenant returns tied to specific industries.&... Read the Full Story |
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It seems like the boring names in the economy could be the ones to attract the attention and capital from all sorts of investors, both retail and pros. But the big guys on Wall Street may be interested in some of the manufacturing and industrial names in the economy t... Read the Full Story |
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From Our PartnersURGENT: Former multi-million dollar hedge fund manager Roger Scott just isolated his #1 Stock for 2024…
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Stocks | | | Shares declined Wednesday in Asia after disappointingly high U.S. inflation data sent stocks sliding on Wall Street, raising prospects that interest rates will remain elevated for longer. Regional market watchers were paying close attention to the outcome of the presidential election in Indonesia, o... Read the Full Story |
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Markets | | | Coca-Cola reported higher-than-expected revenue in the fourth quarter as growth in Mexico, Germany and other markets offset lower sales in the U.S. The Atlanta-based beverage giant said Tuesday its revenue rose 7% to $10.8 billion for the October-December period Read the Full Story |
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From Our PartnersWith so many strange events happening across the economy (longest bear market for bonds since Civil War... unprecedented bank closures... and soaring prices) – it's no wonder the richest investors are loading up on gold. But what you might not realize is there's a much better way to profit from rising gold prices – without ever touching an ETF, mining stock, or even bullion. | | | | Full details here. |
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Waste Management Inc. (NYSE: WM) is not a high-flying growth stock, a game-changing technology or a robust dividend, but it has many qualities income investors can appreciate.
Waste Management is a recession-proof essential service with a solid trajectory for organic growth, robust cas... Read the Full Story |
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Markets | | | Shares of JetBlue are up more than 18% in Tuesday afternoon trading as activist investor Carl Icahn took an almost 10% stake in the airline. Icahn, who purchased the shares in January and February, said in a regulatory filing that he believe JetBlue's stock is undervalued and represents an attractiv... Read the Full Story |
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Shares of Shopify (NYSE: SHOP) fell hard following the Q4 results, and for good reason. The news and guidance left the market in doubt about earnings in 2024, sparking a reset for the market. The good news is that the new outlook is more reasonable, setting the company up for outperformance later ... Read the Full Story |
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Markets | | | How much spending power do U.S. shoppers have left?That's the key question as big U.S. retailers get set to report their latest quarterly results. Even when inflation was high, interest rates were shooting upward and worries were rising that a recession seemed inevitable, U.S. consumers kept spendin... Read the Full Story |
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Markets | | | Jayson Tatum remembers how it felt when he first bought a home. “It didn’t seem real,” said the Boston Celtics power forward, a five-time NBA All-Star set to start for the Eastern Conference in this year's All-Star Game on Sunday. Tatum told The Associated Press in an interview how he wants to help ... Read the Full Story |
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Wednesday's Early Bird Stock Of The Day Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology. The company provides customer experience, robotic process automation, analytics, and AI services in areas, such as digital lending, fraud detection, and next generation payments; the shift towards consumerism, outcome-based contracting, digital health, delivering integrated seamless, omni-channel, and patient-centered experience; and services that drive operational improvements in areas, such as clinical development, pharmacovigilance, and manufacturing, as well as claims processing, enrollment, membership, and billing to healthcare providers and payers, and life sciences companies, including pharmaceutical, biotech, and medical device companies. It offers solution to manufacturers, automakers, retailers and travel and hospitality companies, as well as companies providing logistics, energy and utility services; and digital content, business process improvement, technology modernization, and the creation of unified and compelling user experience services to communications, media and entertainment, education, and information services and technology companies. The company was incorporated in 1988 and is headquartered in Teaneck, New Jersey. | Should I Buy Cognizant Technology Solutions Stock? CTSH Bull and Bear Case Explained
These insights were generated using artificial intelligence. They are based on proprietary MarketBeat data, news articles, and custom LLM A.I. algorithms. This analysis of Cognizant Technology Solutions was last updated on Thursday, February 20, 2025 at 2:12 AM.
Cognizant Technology Solutions Bull Case -
The company reported earnings per share (EPS) of $1.21 for the latest quarter, surpassing analysts' expectations of $1.12, indicating strong financial performance and effective management.
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Cognizant Technology Solutions Co. has announced an increase in its quarterly dividend from $0.30 to $0.31, reflecting a commitment to returning value to shareholders. This translates to an annualized dividend of $1.24, providing a yield of 1.40%.
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With a return on equity of 16.78%, the company demonstrates efficient use of shareholders' equity to generate profits, which is a positive indicator for potential investors.
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Recent analyst upgrades, including a price target increase from $83.00 to $84.00, suggest that market sentiment is favorable, potentially leading to stock price appreciation.
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The current stock price is around $80.11, which may present a buying opportunity for investors looking to enter at a reasonable valuation compared to the consensus price target of $83.67.
Cognizant Technology Solutions Bear Case -
Despite the positive earnings report, the company's net margin of 11.35% may indicate that there is limited room for profitability improvement, which could affect future growth prospects.
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Insider selling activity, such as the recent sale of 5,000 shares by the chief accounting officer, could raise concerns about the company's future performance and insider confidence.
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The stock has received a majority "hold" rating from analysts, suggesting that there may be limited upside potential in the near term, which could deter aggressive investment strategies.
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With a dividend payout ratio of 26.61%, while sustainable, it indicates that a significant portion of earnings is being returned to shareholders, potentially limiting funds available for reinvestment in growth initiatives.
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Market volatility and economic uncertainties could impact the company's performance, especially in the technology sector, which is subject to rapid changes and competition.
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