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CTSH
STRONG BUYCognizant Technology Solutions
Technology
0.44
PEGY ratio
Rank #16
Why This Matters
This stock appears significantly undervalued relative to its growth and dividend yield. Strong projected growth of 33.7% annually over 5 years. Pays a 2.4% dividend yield.
CTSH is trading at 12.0x earnings against 25.0% capped growth (actual 33.7%) + 2.4% yield, giving a PEGY of 0.44. The math suggests the stock is significantly undervalued relative to its growth and income profile.
~ Growth estimate uses historical CAGR (forward estimates unavailable)
- • Growth rate derived from historical CAGR — limited analyst coverage.
- • Growth rate capped at 25% for PEGY calculation (actual: 33.7%). Per Peter Lynch methodology, growth above 25% is rarely sustainable over 5 years.
Scan date: 2026-06-03
Valuation
12.0x
P/E Ratio
Growth
33.7%
5yr EPS
Income
2.4%
Div Yield
PEGY Components
PEGY Score0.44
Denominator27.4%
EPS (TTM)$4.61
Market Data
Price$55.14
ExchangeNASDAQ
S&P 500Nasdaq 100
What Changed
PEGY Score
0.41→0.44(+0.03)
Rank
#13→#16(3 positions)
vs 7 days ago
Portfolio Context
Founder does not hold this stock.
Not in your portfolio.
Sector: Technology
PEGY History — 90 days
Data: Yahoo Finance • Updated nightly 11 PM ET • For informational purposes only