Group 1: Microsoft Investment - Microsoft announced its largest-ever investment in Asia, committing $17.5 billion to develop AI infrastructure, skills, and capabilities in India [2][3] - The investment aims to support India's future AI ambitions and enhance the country's technological landscape [2][3] Group 2: Cognizant's Commitment - Cognizant's CEO and Chairman met with PM Modi to discuss the company's ongoing partnership with India in futuristic sectors, emphasizing AI and skill development [4][5] - Cognizant reaffirmed its commitment to India and plans to expand into emerging cities to promote equitable growth and talent development [5] Group 3: Intel's Semiconductor Vision - Intel's CEO met with PM Modi to discuss the company's commitment to India's semiconductor journey, highlighting the potential for collaboration in technology and innovation [6][7] - Intel expressed support for India's Semiconductor Mission and acknowledged the government's comprehensive policy in this sector [8] Group 4: Overall Investment Landscape - The total investment commitments from major US tech companies in AI-centric data centers in India for 2025 have reached $42.5 billion, including Microsoft's and Google's investments [8][9] - Google announced a $15 billion investment for a 1 gigawatt AI data center in Visakhapatnam, while Amazon Web Services plans to invest $7 billion in Telangana [9]

Core Insights - Cognizant Technology Solutions Corporation (CTSH) has a market capitalization of $39 billion and is a significant player in the global IT-services and consulting sector, offering a variety of services including IT consulting, digital transformation, cloud infrastructure, AI and automation, cybersecurity, business-process outsourcing, and enterprise systems integration [1]. Stock Performance - Cognizant's shares have experienced an 11.1% decline from their 52-week high of $90.82 and a 12.4% decrease over the past three months, underperforming the Nasdaq Composite, which rose by 8.7% during the same period [3]. - Year-to-date, CTSH stock is down 5%, significantly lagging behind the Nasdaq's nearly 22.1% increase, and has seen a marginal drop over the past 52 weeks compared to the Nasdaq's 19.7% return [4]. - Despite the recent price declines, the stock has been trading above its 50-day and 200-day moving averages since late October and late November, respectively [4]. Earnings and Forecast - Following the Q3 2025 earnings release on October 29, Cognizant's shares surged by 5.7% due to better-than-expected results, reporting an adjusted EPS of $1.39 and revenue of $5.42 billion [5]. - The company raised its full-year adjusted earnings forecast to a range of $5.22–$5.26 per share and increased the lower end of its annual revenue outlook to $21.05 billion, bolstering investor confidence [5]. - Investor enthusiasm is further supported by Cognizant's strong growth initiatives centered around AI and increasing enterprise investments in digital infrastructure [5].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but they also come with higher risks and volatility. Identifying strong growth stocks is challenging, especially if a company's growth phase is ending [1]. Group 1: Growth Stock Identification - The Zacks Growth Style Score system helps investors identify promising growth stocks by analyzing real growth prospects beyond traditional metrics. Cognizant (CTSH) is currently highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2]. - Research indicates that stocks with the best growth features consistently outperform the market, particularly those with a Growth Score of A or B and a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [3]. Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being particularly desirable as it signals strong future prospects. Cognizant's historical EPS growth rate is 7.7%, but projected EPS growth for this year is 10.6%, surpassing the industry average of 10% [4]. Group 3: Asset Utilization and Sales Growth - Cognizant's asset utilization ratio (sales-to-total-assets ratio) is 1.04, indicating that the company generates $1.04 in sales for every dollar in assets, which is higher than the industry average of 0.93, showcasing better efficiency [5]. - The company's sales are expected to grow by 6.7% this year, compared to the industry average of 5.5%, indicating strong sales growth potential [6]. Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are important for stock price movements. Cognizant's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 0.1% over the past month [7]. Group 5: Overall Assessment - Cognizant has achieved a Zacks Rank of 2 and a Growth Score of B, based on various favorable metrics, suggesting it is a potential outperformer and a solid choice for growth investors [9].

Core Insights - Cognizant (CTSH) is currently rated as a 2 (Buy) by Zacks Rank, while Hexagon AB Unsponsored ADR (HXGBY) holds a 3 (Hold) rating, indicating a more favorable outlook for CTSH in terms of earnings estimates [3] - Value investors utilize various traditional metrics to identify undervalued stocks, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Valuation Metrics - CTSH has a forward P/E ratio of 15.26, significantly lower than HXGBY's forward P/E of 24.37, suggesting that CTSH may be undervalued [5] - The PEG ratio for CTSH is 1.64, while HXGBY's PEG ratio is 3.03, indicating that CTSH has a more favorable earnings growth outlook relative to its price [5] - CTSH's P/B ratio stands at 2.6 compared to HXGBY's P/B of 2.71, further supporting the argument that CTSH is more attractively valued [6] Conclusion - Based on stronger estimate revision activity and more attractive valuation metrics, CTSH is positioned as the superior option for value investors compared to HXGBY [7]

Core Insights - Cognizant has announced a strategic partnership with Merchants Fleet to modernize fleet management operations through advanced technology and artificial intelligence [1] - The collaboration aims to enhance efficiency and agility in response to changing business environments and customer needs [1] - Cognizant will utilize AI-powered automation and predictive analytics to transform Merchants Fleet's systems and processes [1] Company Overview - Cognizant is focused on engineering modern businesses by helping clients modernize technology, reimagine processes, and transform experiences [1] - Merchants Fleet is recognized as a leader in comprehensive fleet management solutions, offering both long and short-term fleet services [1] - The partnership reflects a broader industry trend towards integrated technology platforms to address challenges in fleet management [1] Industry Trends - The fleet management industry is experiencing rapid transformation, with organizations modernizing legacy systems and leveraging AI for predictive maintenance and customer experience optimization [1] - Merchants Fleet is positioned as an innovator in the industry, setting the pace for advancements while many organizations are still in the early stages of modernization [1] - The collaboration between Cognizant and Merchants Fleet exemplifies how cross-industry expertise can drive sustainable growth and competitive advantage [1]

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage companies [1][2][3] Valuation Metrics - The P/S ratio compares a company's market capitalization to its revenues, providing a clearer picture of value when earnings are minimal or volatile [2][5] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for each dollar of revenue generated [6] - The P/S ratio is often preferred over the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [7] Investment Opportunities - Low P/S stocks can offer compelling opportunities, often trading below their intrinsic value, making them attractive for investors seeking upside potential [3][10] - Companies such as Hamilton Insurance Group, Macy's Inc., Cognizant Technology Solutions, PCB Bancorp, and PRA Group have low P/S ratios and potential for higher returns [4][10] Company Profiles - **Hamilton Insurance Group**: Operates in specialty insurance and reinsurance, benefiting from strong execution and a clear growth roadmap, with gross premiums written rising significantly [12][13] - **Macy's Inc.**: Undergoing a transformation with its Bold New Chapter program, focusing on digital initiatives and omnichannel retailing, currently holds a Value Score of A and Zacks Rank 2 [14][15] - **Cognizant Technology Solutions**: A leading professional services company with strong growth in Health Sciences and Financial Services, bolstered by acquisitions and AI initiatives [16][17] - **PCB Bancorp**: Offers a range of banking products and services, strategically positioned for sustained growth, currently holds a Value Score of A and Zacks Rank 2 [18][19] - **PRA Group**: Focuses on the purchase and management of non-performing loans, benefiting from strategic acquisitions and a positive purchasing environment, currently holds a Value Score of A and Zacks Rank 2 [20][21]

Core Insights - Cognizant reported strong Q3 earnings with non-GAAP earnings of $1.39 per share, beating estimates by 7.75% and increasing 11.2% year over year [2] - Revenues reached $5.42 billion, surpassing consensus by 1.63%, with a year-over-year growth of 7.4% and 6.5% at constant currency [3] - The company expects Q4 revenues between $5.27 billion and $5.33 billion, indicating growth of 3.8%-4.8% [11] Financial Performance - Non-GAAP earnings per share for Q3 were $1.39, reflecting an 11.2% increase year over year [2] - Total revenues of $5.42 billion showed a 7.4% year-over-year increase, with strong performance in North America [3] - Financial services revenues increased 6.2% year over year to $1.578 billion, while health sciences revenues rose 5.9% to $1.604 billion [5] Segment Performance - Products and Resources revenues grew 12.6% year over year to $1.383 billion, while Communications, Media and Technology revenues increased 4.2% to $850 million [6] - North America contributed 74.4% of total revenues, with a year-over-year increase of 7.8% [6] - Europe revenues increased 7.8% year over year, with Continental Europe showing an 11.1% increase [7] Operational Metrics - Bookings increased 5% year over year to $27.5 billion, with a book-to-bill ratio of approximately 1.3 times [4] - The company reported a GAAP operating margin of 16%, expanding 140 basis points year over year [9] - Selling, general & administrative expenses as a percentage of revenues decreased by 110 basis points to 15.4% [8] Balance Sheet and Cash Flow - Cash and short-term investments increased to $2.35 billion from $1.80 billion in the previous quarter [10] - Total debt decreased to $584 million from $592 million [10] - Free cash flow for the quarter was $1.16 billion, significantly up from $331 million in the prior quarter [10] Future Guidance - For 2025, Cognizant expects revenues between $21.05 billion and $21.10 billion, indicating a growth of 6.6%-6.9% [11] - Adjusted earnings per share for 2025 are projected to be between $5.22 and $5.26 [12] - The company anticipates an adjusted operating margin of approximately 15.7% for 2025, an increase of 40 basis points [11] Market Position - Cognizant has a Zacks Rank 2 (Buy), indicating positive investor sentiment and expectations for above-average returns [15] - The stock has a Growth Score of B and a Value Score of B, reflecting a balanced investment profile [14]

Core Insights - Infosys Ltd is the only major IT services company that has increased its US lobbying expenditure over the past five years, while competitors like Tata Consultancy Services (TCS), Cognizant, and Wipro have reduced their spending [1][19] - The US government, which constitutes a significant portion of revenue for these companies, has tightened labor mobility and restricted access to foreign workers, prompting a shift in lobbying strategies [2][19] Lobbying Expenditure - Infosys spent $270,000 on lobbying in the first nine months of the year, an increase from $240,000 in 2020 [2] - In contrast, TCS and Cognizant reported declines in lobbying expenditures, spending $670,000 and $1.7 million respectively in the first nine months of 2025, down from $750,000 and $3.15 million in 2020 [3] - Wipro's lobbying costs decreased from $210,000 in 2020 to $90,000 in 2022, and it has not engaged lobbying services since then [3] Industry Trends - The overall lobbying spending by major Indian IT firms, including Nasscom, has been declining since 2020, with Nasscom spending less than one-tenth of its 2020 expenditure of $700,000 in the first nine months of 2025 [4][5] - Collectively, the largest IT services companies and Nasscom spent $2.7 million on lobbying, which is less than 1% of their revenue and significantly lower than the $5.05 million spent in 2020 [6] Strategic Shifts - The decline in lobbying costs is attributed to an increase in local hiring and a shift towards offshore delivery and AI utilization, reducing dependency on large onshore workforces [11] - The political climate has changed, making lobbying less effective, leading firms to focus on structural changes rather than political influence [12] Key Issues in Lobbying - H-1B visa regulations remain a central lobbying focus for the top three IT service providers, with TCS and Cognizant highlighting immigration-related issues in their lobbying reports [13][14] - Recent changes in H-1B application fees and scrutiny over hiring practices have intensified the need for lobbying among these firms [15][16][17] Conclusion - Infosys stands out for increasing its lobbying efforts amidst a general decline in political spending by its peers, reflecting a strategic pivot in response to stricter US labor mobility rules and a focus on local hiring and AI-driven models [19]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four main types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes identifying undervalued stocks using financial ratios [3] - Growth Score focuses on a company's future earnings and financial health [4] - Momentum Score assesses stocks based on price trends and earnings outlook [5] - VGM Score combines the three styles to identify stocks with the best overall potential [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist in stock selection [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +23.93% since 1988 [8] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [9] Stock Example: Cognizant Technology Solutions Corporation (CTSH) - Cognizant is currently rated 3 (Hold) with a VGM Score of A, indicating potential for growth [11] - The company is projected to achieve a year-over-year earnings growth of 10.5% for the current fiscal year [11] - Recent upward revisions in earnings estimates have increased the Zacks Consensus Estimate to $5.25 per share, with an average earnings surprise of +5.8% [12]

Core Insights - Cognizant has been selected by the Coalition for Epidemic Preparedness Innovations (CEPI) to implement a comprehensive digital transformation program, including a new core HR and Expense Management System and support for CEPI's Salesforce platform [1][2][4] Group 1: Project Scope and Objectives - The multi-year engagement aims to enhance CEPI's digital transformation strategy by strengthening core platforms and introducing AI-enabled insights, automation, and scalable solutions to improve efficiency and reduce operational costs [2][4] - Cognizant will ensure the Salesforce platform remains robust and scalable, aligning with CEPI's organizational goals while also establishing a roadmap for enterprise architecture [4] Group 2: Partnership and Cultural Alignment - CEPI values collaboration, impact, and resilience, which align closely with Cognizant's values, making Cognizant a trusted partner for this initiative [3][5] - The selection of Cognizant followed a competitive procurement process, highlighting its technical competence and cultural alignment with CEPI [3][5] Group 3: CEPI's Mission and Goals - CEPI is focused on accelerating the development of vaccines and biologic countermeasures against epidemic and pandemic threats, with a mission to make them accessible to all [6] - CEPI has supported the development of over 70 vaccine candidates against high-risk pathogens and aims to reduce vaccine development time to just 100 days for new threats [6]