Cognizant Technology Solutions Corporation (CTSH) is lower, but well off its lows today after reporting fourth quarter results last night. The earnings report was not poor, with earnings coming in only slightly below estimates. However, I am very concerned that no guidance was given for 2023.
New management is likely considering heavy investments to invigorate growth, which could lead to guidance significantly below current estimates. While this could be better for the company in the long-term, short-term risks appear to be very high with the stock almost 40% off its recent lows.
Sell CTSH Stock at market price.