The reaction in the Cognizant’s stock yesterday was overdone, but that is something investors already knew. Short term investors are wondering is the guidance lowered enough. The answer lies in the strength of the macro, which we cannot predict. If the macro is not stable or doesn’t improve, it will impact more than Cognizant’s business which is resilient. Long term investors understand that Cognizant’s model is sound. Attributes include industry leading growth rates, catalyst such as Healthcare, and outstanding execution. We encourage investors to take advantage of an opportunity noting that the business model is sound and the lowering of guidance is a positive noting it confirms the air of caution surrounding not just the sector, but the market. We reiterate our BUY.
Joseph D. Foresi