IT and technology stocks have had a strong run through most of 2020. The pandemic has placed greater emphasis on work from home, better digital infrastructure, and more productivity online. In such a scenario, companies that offer solutions to allow people to go about their lives from home or from a remote location have performed well. Companies like Cognizant Technology Solutions have been among the IT stocks to invest in right now because they have demonstrated strong growth and provide critical systems and solutions that customers do not switch to very quickly. Cognizant is one of the leading providers of consulting and outsourcing services, and investors may want to look more closely at the company’s prospects if investing in IT stocks is the goal.
Cognizant Company Background
Cognizant Technology Solutions is headquartered in Teaneck, New Jersey, and employs more than 300,000 people globally. A large part (70%) of Cognizant’s workforce is based in India, taking advantage of the cost and technical talent of the country. The general description of Cognizant gives a perception that the firm is a back-office outsourcing specialist. However, that is not accurate. Cognizant has strong capabilities in cloud, artificial intelligence, and other vital areas that are leading a global trend in the digital transformation of businesses. Cognizant was born out of a spin-off executed in 1996 by Dun & Bradstreet. Cognizant was part of Dun & Bradstreet’s in-house technology unit. After the spin-off, a company called Cognizant Corporation was established in Chennai, India. The company was renamed Cognizant Technology Solutions in 1997. Even today, it remains one of the best IT stocks to invest in.
Cognizant Technology Solutions Corp’s stock closed at $76.55 on 19th March 2021. The stock offered a reasonable dividend yield of 1.25% at the time. Over the preceding month, the stock has trended up by 4.5%. A peer of Cognizant is Wipro Limited. Its stock closed at $6.38 on 19th March 2021, down 0.93% for the preceding month.