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Want tech stock? Look at Cognizant

Investors interested in tech stocks should look at Cognizant Technology Solutions (CTSH), a leading provider of information technology, consulting, and business process outsourcing services. The company benefits from strong demand for high quality, lower cost technology services. Based on its global delivery model and expanding capacity in low-cost areas in India, China, Philippines and Latin America, the company, in my opinion, remains well-positioned in the outsourcing market. I also believe that growing demand for offshoring services beyond traditional IT outsourcing; namely, BPO (Business Process Outsourcing), KPO (Knowledge Process Outsourcing) and IT infrastructure services bode well for the company over the long term.

Cognizant’s Q2 financials were strong, with both top and bottom line surpassing consensus estimates. Revenues jumped 23% y-o-y on the back of solid performance of Financial services and Health care segments, while adjusted EPS grew 19%. Moreover, the company raised its full year-2015 guidance.

On November 4, Cognizant will announce Q3 results, and I believe that the company’s growth momentum will continue. I also note that recently, Cognizant breached its 50-day moving average in a bullish manner.

In my opinion, Cognizant’s shares represent a nice choice for medium-term investment.