CTSH
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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.
Historical Touches
CTSH has crossed below its 200-week MA 22 times with an average 1-year return of +66.6% after recovery.
| Crossed Below | Recovered | Weeks | Max Depth | 1-Year Return | Return Since Touch |
|---|---|---|---|---|---|
| May 1999 | Jun 1999 | 1 | 0.7% | +397.6% | +17946.6% |
| Jul 1999 | Jul 1999 | 1 | 4.9% | +247.2% | +18656.3% |
| Aug 1999 | Sep 1999 | 4 | 4.9% | +264.7% | +18044.7% |
| Sep 2001 | Nov 2001 | 7 | 26.2% | +169.6% | +9324.7% |
| Jan 2008 | Jan 2008 | 3 | 7.9% | -25.9% | +541.4% |
| Mar 2008 | Mar 2008 | 2 | 5.9% | -23.1% | +537.6% |
| Apr 2008 | Apr 2008 | 1 | 9.5% | -11.0% | +555.4% |
| Jul 2008 | Aug 2009 | 56 | 50.0% | -6.2% | +517.5% |
| Apr 2013 | Apr 2013 | 1 | 0.6% | +57.3% | +180.6% |
| Jun 2013 | Jul 2013 | 3 | 2.2% | +50.6% | +176.1% |
| Sep 2016 | Oct 2016 | 5 | 7.1% | +52.7% | +82.2% |
| Jan 2017 | Feb 2017 | 1 | 0.6% | +45.2% | +65.6% |
| Dec 2018 | Jan 2019 | 4 | 7.5% | +6.5% | +42.2% |
| Apr 2019 | Feb 2020 | 40 | 9.9% | -3.4% | +43.9% |
| Feb 2020 | Jul 2020 | 22 | 33.3% | +22.2% | +38.1% |
| Jun 2022 | Aug 2022 | 7 | 4.2% | -0.4% | +22.8% |
| Aug 2022 | Jul 2023 | 50 | 22.8% | +2.1% | +19.1% |
| Oct 2023 | Nov 2023 | 5 | 6.2% | +17.3% | +21.5% |
| Apr 2024 | Jul 2024 | 13 | 7.5% | +2.9% | +14.5% |
| Mar 2025 | Apr 2025 | 3 | 1.8% | N/A | +13.6% |
| Aug 2025 | Aug 2025 | 2 | 1.2% | N/A | +11.8% |
| Sep 2025 | Oct 2025 | 7 | 5.8% | N/A | +11.9% |
| Average | 11 | — | +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