Cognizant Technology Solutions Becomes Oversold

The DividendRank formula at Dividend Channel ranks a protection universe of 1000’s of dividend shares, according to a proprietary method developed to establish those stocks that mix two critical traits — strong fundamentals and a valuation that appears to be economical. Cognizant Technologies Solutions Corp. (Symbol: CTSH) presently has an previously mentioned typical rank, in the best 50% of the protection universe, which indicates it is among the the major most “exciting” strategies that advantage even more analysis by investors.

But producing Cognizant Know-how Solutions Corp. an even far more attention-grabbing and timely stock to glimpse at, is the reality that in investing on Thursday, shares of CTSH entered into oversold territory, transforming fingers as lower as $63.26 for each share. We determine oversold territory employing the Relative Energy Index, or RSI, which is a technical evaluation indicator utilized to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading through falls down below 30.

In the scenario of Cognizant Technology Remedies Corp., the RSI studying has hit 29.7 — by comparison, the universe of dividend shares lined by Dividend Channel at this time has an average RSI of 40.3. A slipping inventory cost — all else getting equal — produces a much better possibility for dividend buyers to seize a increased generate. Without a doubt, CTSH’s modern annualized dividend of 1.08/share (at this time paid in quarterly installments) works out to an annual yield of 1.66% primarily based on the latest $65.04 share selling price.

A bullish investor could seem at CTSH’s 29.7 RSI examining right now as a indicator that the the latest weighty selling is in the course of action of exhausting itself, and get started to glance for entry point opportunities on the obtain aspect. Amid the basic datapoints dividend investors should really examine to make a decision if they are bullish on CTSH is its dividend history.

In general, dividends are not always predictable but, hunting at the history chart down below can assistance in judging regardless of whether the most modern dividend is very likely to continue.