CTSH

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NO
11.4% ABOVE
↓ Approaching Was 18.5% last week
-15% -10% -5% 0% 5% 10% 15%+
Buy Threshold $69.20
14-Week RSI 57

Cognizant Technology Solutions Corporation (CTSH) closed at $77.08 as of 2026-02-02, trading 11.4% above its 200-week moving average of $69.20. The stock is currently moving closer to the line, down from 18.5% last week. The 14-week RSI sits at 57, indicating neutral momentum.

Over the past 1394 weeks of data, CTSH has crossed below its 200-week moving average 22 times. On average, these episodes lasted 11 weeks. Historically, investors who bought CTSH at the start of these episodes saw an average one-year return of +66.6%.

With a market cap of $37.2 billion, CTSH is a large-cap stock. The company generates a free cash flow yield of 2.8%. Return on equity stands at 15.2%, a solid level. The stock trades at 2.5x book value.

The company has been aggressively buying back shares, reducing its share count by 5.7% over the past three years. CTSH passes our Buffett quality screen: high return on equity, low debt, and positive free cash flow.

Over the past 26.8 years, a hypothetical investment of $100 in CTSH would have grown to $18047, compared to $849 for the S&P 500. That represents an annualized return of 21.4% vs 8.3% for the index — confirming CTSH as a market-beating investment and the kind of quality company where buying during 200-week moving average touches has historically been rewarded.

Free cash flow has been declining at a -6.2% compound annual rate. A deteriorating cash flow trend warrants extra scrutiny — the stock may be cheap for a reason.

Growth of $100: CTSH vs S&P 500

Monthly data normalized to $100 at start. Vertical dashed lines mark 200-week MA touches.

What Happens After CTSH Crosses Below the Line?

Across 22 historical episodes, buying CTSH when it crossed below its 200-week moving average produced an average return of +61.8% after 12 months (median +19.0%), compared to +6.4% for the S&P 500 over the same periods. 68% of those episodes were profitable after one year. After 24 months, the average return was +103.3% vs +21.4% for the index.

Each line shows $100 invested at the moment CTSH crossed below its 200-week MA. Bold blue = stock average. Gray dashed = S&P 500 average over same periods.

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Historical Touches

CTSH has crossed below its 200-week MA 22 times with an average 1-year return of +66.6% after recovery.

Crossed BelowRecoveredWeeksMax Depth1-Year ReturnReturn Since Touch
May 1999Jun 199910.7%+397.6%+17946.6%
Jul 1999Jul 199914.9%+247.2%+18656.3%
Aug 1999Sep 199944.9%+264.7%+18044.7%
Sep 2001Nov 2001726.2%+169.6%+9324.7%
Jan 2008Jan 200837.9%-25.9%+541.4%
Mar 2008Mar 200825.9%-23.1%+537.6%
Apr 2008Apr 200819.5%-11.0%+555.4%
Jul 2008Aug 20095650.0%-6.2%+517.5%
Apr 2013Apr 201310.6%+57.3%+180.6%
Jun 2013Jul 201332.2%+50.6%+176.1%
Sep 2016Oct 201657.1%+52.7%+82.2%
Jan 2017Feb 201710.6%+45.2%+65.6%
Dec 2018Jan 201947.5%+6.5%+42.2%
Apr 2019Feb 2020409.9%-3.4%+43.9%
Feb 2020Jul 20202233.3%+22.2%+38.1%
Jun 2022Aug 202274.2%-0.4%+22.8%
Aug 2022Jul 20235022.8%+2.1%+19.1%
Oct 2023Nov 202356.2%+17.3%+21.5%
Apr 2024Jul 2024137.5%+2.9%+14.5%
Mar 2025Apr 202531.8%N/A+13.6%
Aug 2025Aug 202521.2%N/A+11.8%
Sep 2025Oct 202575.8%N/A+11.9%
Average11+66.6%

Not financial advice. This is an educational tool. Past performance does not guarantee future results. Do your own research before making investment decisions.

Data as of Friday close, 2026-02-02