Zacks Equity Research October 27, 2020.
You follow Tale of the Tape — edit.
You follow Zacks Equity Research — edit.
What would you like to follow?
Zacks Equity Research.
Tale of the Tape.
Investors are always looking for stocks that are poised to beat at earnings season and Cognizant Technology Solutions Corporation ( CTSH — Free Report) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Cognizant Technology is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for CTSH in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at 92 cents per share for CTSH, compared to a broader Zacks Consensus Estimate of 90 cents per share. This suggests that analysts have very recently bumped up their estimates for CTSH, giving the stock a Zacks Earnings ESP of +2.22% heading into earnings season.
Cognizant Technology Solutions Corporation Price and EPS Surprise.
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that CTSH has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
Clearly, recent earnings estimate revisions suggest that good things are ahead for Cognizant Technology, and that a beat might be in the cards for the upcoming report.
Just Released: Zacks’ 7 Best Stocks for Today.
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.
These 7 were selected because of their superior potential for immediate breakout.
In-Depth Zacks Research for the Tickers Above.
Normally $25 each — click below to receive one report FREE:
Published in.
Zacks’ 7 Best Strong Buy Stocks for November, 2020.
Experts have chosen 7 stocks out of 220 Zacks Rank #1 Strong Buys that have the highest potential to increase in price quickly amid the global health crisis. A recent pick, Maxar, skyrocketed +178.7% in 3 months.
For over three decades, our Strong Buy list has averaged returns more than twice the market. See its 7 best stocks FREE.
Privacy Policy | No cost, no obligation to buy anything ever.
Up Next.
Should You Buy Blackstone (BX) Ahead of Earnings?
Most Read.
Quick Links.
My Account.
Client Support.
Follow Us.
Zacks Mobile App.
Zacks Research is Reported On:
Yahoo MSN Marketwatch Nasdaq Forbes Morningstar.
This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Verizon Media; Microsoft Corporation; Nasdaq, Inc.; Dow Jones & Company; Forbes Media, LLC; Investor’s Business Daily, Inc.; and Morningstar, Inc.
Copyright 2020 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606.
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.41% per year. These returns cover a period from January 1, 1988 through October 5, 2020. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
Visit performance for information about the performance numbers displayed above.
Visit to get our data and content for your mobile app or website.
Real time prices by BATS. Delayed quotes by Sungard.
NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.