Market Overview

Cognizant Drops on Low Guidance, But Market Cycles Point Higher

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Cognizant Technology Solutions (NASDAQ: CTSH) traded 5% lower on Monday morning, after reporting in-line earnings that missed Wall Street expectations for guidance. The company reported earnings per share of $1.06 and total revenue of $3.91 billion, compared to estimates of $1.06 and $3.9 billion. For Q2, the company expects earnings of $1.09 and revenue of $4 billion, both of which are just below the consensus of $1.12 and $4.02 billion.

Looking at the CTSH weekly chart, the stock has been solidly positive, however now it’s at the top of a support zone and the end of the current market cycle. From here, we expect a bounce coming in a week or so. However, a drop below $75 would be a negative signal. For an introduction to cycle analysis, check out our Stock Market Cycles video.

Cognizant Technology Solutions Stock Chart with Weekly Bars

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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