Cognizant Technology Solutions Corporation (NASDAQ:CTSH): Stock in the Hotbed

Investors are constantly trying to gain any little advantage when studying potential stocks to add to the portfolio. Keeping close tabs on Wall Street analyst price targets may help investors stay tuned in to current sentiment. After a recent check, we have noted that Cognizant Technology Solutions Corporation (NASDAQ:CTSH) has an average target price of 81.95. Even though professional analysts may have better information about a certain company, investors may need to proceed with caution when it comes to following price targets. Price targets are essentially educated guesses on what will happen with the stock price going forward. Investors who buy or sell strictly on analyst targets may be banking on analysts being correct about their projections. Although this strategy may work out more often than not, investors may be better served to conduct their own research and then use price target estimates as a comparison tool.

Many individuals strive to become successful stock market traders. In reality, it can be very difficult for the average trader to stay afloat during the process of learning all the ins and outs the market. Of course there will always be those who happen to get lucky and end up making a lot of money in the stock market with little knowledge. There will also be a number of people who never experience any type of success trading the stock market. Learning how to properly manage risk and keep emotions in check may be two of the more important aspects of trading the equity market. Although there may be a trading strategy that works for one individual, it may not produce the same results when employed by another individual.

Investors may be sizing up shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH). After a recent check, we see that the current quarter EPS consensus estimate provided by Zacks is standing at 1.07. This EPS estimate is comprised of 12 sell-side analysts polled by Zacks. For the last reporting period, the company posted a quarterly EPS of 1.19. Analysts and investors will be closely studying the next round of company earnings reports. Consistent success on the earnings front may point to the company moving in the right direction. On the flip side, a company that has strung together a few bad quarters may ring the warning bells for interested investors.

Investors have the ability to follow Wall Street analyst views when conducting stock research. Sell-side analysts often put in a lot of time trying to evaluate the inner workings of a company. They may dig through the financials, conduct interviews, and pay keen attention to conference calls in order to compile data for the research report. Many analysts will offer buy, sell, or hold recommendations for stocks they cover. Checking on shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH), we see that the current average broker rating is 2. This average rating falls on a scale from 1 to 5 where a 1 would indicate a Strong Buy. On the flip side, a 5 rating would signify a Strong Sell. Based on data provided by Zacks, there are currently 11 polled analysts rating the stock a Strong Buy or Buy. Investors often have to decide whether they are in agreement with how the analysts perceive the future prospects of a specific stock.

Investing in the stock market can sometimes draw intense emotion from individual investors. When the market slips into a chaotic state, some investors may let their emotions get the best of them which can lead to impulsive decisions. On the other side of the coin, market chaos may cause certain investors to freeze in a panic. This may mean that the investor becomes shaken to the point that they are unable to make any decisions let alone an educated one. Discipline is a quality shared by many successful traders and investors. Staying committed to the plan, whether short-term or long-term, can help investors make it through those times of extreme market uncertainty.

Following recent trading activity on shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH), we can see that the stock has been hovering near the 67.09 price level. Shareholders might be asking themselves whether now is a good time to buy or sell the stock. Over the previous 12 weeks, the stock has moved -11.68%. Looking back over the last month, shares have moved -3.54%. Over the previous week, the stock has changed -6.73%. Investors may also be watching the current price in relation to the 52-week highs/lows. After a recent scan, we note that the 52-week high is presently 84.83, and the 52-week low is 66.52.

Many traders will build a system to use when entering the market. Many trading systems will work for a time, but they may need to be tweaked at some point in order to adapt to the current market environment. Successful trading systems usually require a great deal of discipline. The best traders are often able to become highly skilled at managing risk and securing profits. For new traders, it may be tempting to use a system that a friend or colleague recommends. This may work for some, but many individuals might eventually realize that the style or system does not particularly suit their trading style. 

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