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CTSH vs EPAM
Which Stock Would AI Choose? Cognizant Technology Solutions (CTSH) vs. EPAM Systems (EPAM) Stock Comparison
Key Takeaways
- CTSH offers a lower trailing P/E ratio (price-to-earnings) of 12.15 compared to EPAM's 17.75, positioning it as a relative value play in the IT services sector.
- Both stocks have shown year-to-date (YTD) gains, with EPAM at 41.77% outperforming CTSH's 32.89%, though both trade near 52-week lows amid recent market pressures.
- CTSH provides a forward dividend yield of 2.40%, appealing to income-focused investors, while EPAM announced a $300 million share buyback recently.
- Analyst price targets suggest significant upside for both: 82.06 for CTSH (48% potential) and 187.24 for EPAM (57% potential).
- CTSH demonstrates lower volatility with a beta of 0.98 versus EPAM's 1.73, suiting risk-averse portfolios.
Introduction
Cognizant Technology Solutions (CTSH) and EPAM Systems (EPAM) are prominent players in the IT services and digital engineering space, both capitalizing on demand for AI-driven transformations. This stock comparison evaluates their recent market positioning, financial metrics, and growth trajectories amid evolving sector dynamics. Traders seeking short-term momentum and investors focused on long-term value in technology consulting will find insights into relative performance, valuation, and risk profiles. With both firms navigating macroeconomic headwinds and AI opportunities, understanding their contrasts aids informed decision-making in a competitive landscape.
CTSH Overview and Recent Performance
Cognizant Technology Solutions (CTSH) is a global IT services leader providing digital, cloud, and AI solutions across industries like healthcare, finance, and manufacturing. With a market capitalization of approximately $26.5 billion, it dwarfs peers in scale. In recent market activity, the stock has traded near its 52-week low of $54.26, reflecting a pullback after earlier gains, influenced by broader sector rotations and post-earnings adjustments. Sentiment has been buoyed by strategic AI advancements, including partnerships with Google Cloud for agentic retail experiences and OpenAI for software engineering via Codex, alongside new U.S. patents from its AI Lab. These developments underscore a focus on innovation, supporting quarterly revenue growth of 4.90% year-over-year and earnings growth of 18.70%. Analysts maintain optimism, with an average price target implying substantial upside.
EPAM Overview and Recent Performance
EPAM Systems (EPAM) specializes in digital platform engineering, software development, and agile transformation services, serving tech, media, and financial clients worldwide. Its $6.3 billion market cap reflects a nimbler, growth-oriented profile. Recent weeks have seen the stock hover near its 52-week low of $117.49, pressured by client-specific challenges and AI adoption dynamics despite robust fundamentals like 12.80% quarterly revenue growth year-over-year. Key catalysts include a new AI strategy announcement paired with a $300 million buyback, though the stock dipped post-reveal amid margin pressures, with gross margins slipping to 28.83%. Annual revenue expansion of 15.5% and strong free cash flow margins of 11.2% bolster long-term appeal, while analyst targets point to considerable recovery potential.
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Head-to-Head Comparison
In business models, CTSH emphasizes broad-spectrum IT consulting with stable enterprise contracts, contrasting EPAM's niche in custom software engineering and agile delivery, which drives higher growth but exposes it to project-based volatility. Growth drivers favor EPAM with faster revenue expansion (15.5% vs. CTSH's 6.95%), yet CTSH counters with superior profitability (10.56% margins) and a dividend policy. Recent momentum shows both underperforming peaks, but CTSH exhibits steadier trends. Risk factors include EPAM's elevated beta and geographic exposures, versus CTSH's low debt/equity (7.82%). Sector exposure aligns in AI and cloud, but market sentiment tilts toward CTSH for value amid caution.
Tickeron AI Verdict
Tickeron’s AI models currently lean toward CTSH due to its attractive valuation, trend stability, dividend support, and accumulating AI catalysts like partnerships and patents, offering a more probabilistic edge in the near term relative to EPAM's higher volatility and recent dips.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CTSH is a StrongBuy and EPAM is a Buy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CTSH’s FA Score shows that 1 FA rating(s) are green whileEPAM’s FA Score has 0 green FA rating(s).
- CTSH’s FA Score: 1 green, 4 red.
- EPAM’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CTSH’s TA Score shows that 4 TA indicator(s) are bullish while EPAM’s TA Score has 4 bullish TA indicator(s).
- CTSH’s TA Score: 4 bullish, 5 bearish.
- EPAM’s TA Score: 4 bullish, 4 bearish.
Price Growth
CTSH (@Information Technology Services) experienced а -17.69% price change this week, while EPAM (@Information Technology Services) price change was -17.99% for the same time period.
The average weekly price growth across all stocks in the @Information Technology Services industry was -5.07%. For the same industry, the average monthly price growth was -9.75%, and the average quarterly price growth was +63.79%.
Reported Earning Dates
CTSH is expected to report earnings on Aug 05, 2026.
EPAM is expected to report earnings on Jul 30, 2026.
Industries' Descriptions
@Information Technology Services (-5.07% weekly)The industry, whose total market cap runs into trillions, makes hardware/software that allows data to be stored, retrieved, transmitted, and manipulated on computers. With the ever-increasing relevance of data, the information technology (IT) industry has gained momentous growth over the years, and continues to thrive on innovation. Some of the behemoths in the industry are International Business Machines Corporation, Accenture, and VMware, Inc.
| CTSH | EPAM | CTSH / EPAM | |
| Capitalization | 19.8B | 3.97B | 498% |
| EBITDA | 4.06B | 704M | 577% |
| Gain YTD | -48.989 | -62.886 | 78% |
| P/E Ratio | 9.07 | 10.93 | 83% |
| Revenue | 21.4B | 5.56B | 385% |
| Total Cash | 1.52B | 1.04B | 146% |
| Total Debt | 1.09B | 288M | 379% |
CTSH | EPAM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 56 | 79 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 8 Undervalued | 51 Fair valued | |
PROFIT vs RISK RATING 1..100 | 100 | 100 | |
SMR RATING 1..100 | 57 | 69 | |
PRICE GROWTH RATING 1..100 | 65 | 66 | |
P/E GROWTH RATING 1..100 | 90 | 93 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
CTSH's Valuation (8) in the Information Technology Services industry is somewhat better than the same rating for EPAM (51). This means that CTSH’s stock grew somewhat faster than EPAM’s over the last 12 months.
CTSH's Profit vs Risk Rating (100) in the Information Technology Services industry is in the same range as EPAM (100). This means that CTSH’s stock grew similarly to EPAM’s over the last 12 months.
CTSH's SMR Rating (57) in the Information Technology Services industry is in the same range as EPAM (69). This means that CTSH’s stock grew similarly to EPAM’s over the last 12 months.
CTSH's Price Growth Rating (65) in the Information Technology Services industry is in the same range as EPAM (66). This means that CTSH’s stock grew similarly to EPAM’s over the last 12 months.
CTSH's P/E Growth Rating (90) in the Information Technology Services industry is in the same range as EPAM (93). This means that CTSH’s stock grew similarly to EPAM’s over the last 12 months.
| CTSH | EPAM | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 52% | 2 days ago 71% |
| Stochastic ODDS (%) | 2 days ago 58% | 2 days ago 82% |
| Momentum ODDS (%) | 2 days ago 58% | 2 days ago 77% |
| MACD ODDS (%) | 2 days ago 51% | 2 days ago 81% |
| TrendWeek ODDS (%) | 2 days ago 58% | 2 days ago 75% |
| TrendMonth ODDS (%) | 2 days ago 61% | 2 days ago 74% |
| Advances ODDS (%) | 23 days ago 53% | 19 days ago 66% |
| Declines ODDS (%) | 2 days ago 55% | 2 days ago 78% |
| BollingerBands ODDS (%) | 2 days ago 52% | 2 days ago 65% |
| Aroon ODDS (%) | 2 days ago 57% | 2 days ago 73% |
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CTSH and
Correlation & Price change
A.I.dvisor indicates that over the last year, CTSH has been closely correlated with ACN. These tickers have moved in lockstep 81% of the time. This A.I.-generated data suggests there is a high statistical probability that if CTSH jumps, then ACN could also see price increases.
| Ticker / NAME | Correlation To CTSH | 1D Price Change % | ||
|---|---|---|---|---|
| CTSH | 100% | -4.28% | ||
| ACN - CTSH | 81% Closely correlated | -2.46% | ||
| EPAM - CTSH | 71% Closely correlated | -0.78% | ||
| INFY - CTSH | 69% Closely correlated | +1.89% | ||
| GLOB - CTSH | 67% Closely correlated | -2.50% | ||
| GIB - CTSH | 65% Loosely correlated | +0.08% | ||
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