8 Best Information Technology Services Stocks to Invest in Now

4) Cognizant Technology Solutions Corporation (NASDAQ:CTSH)

Number of Hedge Fund Holders: 39

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is a professional services company, that offers consulting and technology, and outsourcing services in North America, Europe, and internationally.

Wall Street remains optimistic about Cognizant Technology Solutions Corporation (NASDAQ:CTSH)’s recent acquisition of Belcan. This strategic move is being seen as a long-term investment in high-quality engineering talent. The Belcan acquisition should enhance the company’s service offerings and diversify the client base, which will help in reducing reliance on the healthcare and financial services sectors. This acquisition should strengthen Cognizant Technology Solutions Corporation (NASDAQ:CTSH)’s market position and contribute to revenue growth.

The adoption of GenAI should increase in fiscal year 2025, potentially aiding its growth strategy. Its expansion in aerospace and defense sectors, with the help of the Belcan acquisition, offers new opportunities for revenue diversification. Cognizant Technology Solutions Corporation (NASDAQ:CTSH)’s expertise in IT services and consulting enables it to support clients in implementing and leveraging GenAI solutions. This will fuel new business and increase the value of existing contracts.

The integration of GenAI capabilities throughout the company’s service portfolio should result in enhanced productivity, innovative solutions, and differentiation amidst strong competition. JPMorgan Chase & Co. upped its price target on the shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) from $82.00 to $89.00, giving a “Neutral” rating on 6th September.