Tech stocks have had a strong run in the year 2020. As the pandemic has forced traditional businesses that depend on physical presence into shutdowns, technology products and services have seen strong demand. People staying at home and working from home has led to increasing amounts of time spent online. Companies like Cognizant, which offer IT services, have had a good run. Cognizant Technology Solutions offers consulting and outsourcing services to the world’s largest businesses in diverse industries like financial services, healthcare, consumer products, media and communications, and natural resources. Cognizant Technology Solutions Corporation is among the best IT stocks to buy for 2020.
A Brief Background Of Cognizant Technology Solutions Corporation
Cognizant was founded in 1994. It is based in Teaneck, New Jersey and the company employs close to 300,000 people. 70% of Cognizant’s workforce is based in India. Cognizant’s current CEO is Brian Humphries. He joined the company back in April 2019 after serving as the CEO of Vodafone Business. Brian is leading Cognizant’s investments into digital capabilities to position the company favorably in an ever-changing digital landscape. Cognizant has also been active on the acquisitions front. It has been acquiring consultancies in the digital transformation space to bolster its traditional consulting business. One major risk for Cognizant is the attrition rate. Being a people-driven consulting business, Cognizant depends on its ability to find talent with technical and industry expertise.
Price Performance Of The Best IT Stocks To Buy For 2020
Cognizant’s stock last closed at $78 on 10th December 2020. The stock has been up 2.11% for the past month. It is also up a strong 88% since the March market crash. On a longer-term basis, the stock has gained 34% over a 5-year period.
Cognizant’s much larger peer Accenture has closed at $246 on 10th December 2020. Its stock is up 1.5% over the past month. Accenture’s stock has gained 70% since the March market crash. On a 5-year basis, the stock has gone up almost 2.5X.