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CTSH vs JKHY
Which Stock Would AI Choose? Cognizant Technology Solutions (CTSH) vs. Jack Henry & Associates (JKHY) Stock Comparison
Key Takeaways
- Both CTSH and JKHY, in the information technology services sector, have experienced downward pressure in recent market activity, with CTSH declining around 14% since its last earnings report and JKHY down approximately 13% over the past four weeks.
- CTSH offers a more attractive valuation with a trailing P/E ratio (price-to-earnings ratio) of 12.2 versus JKHY's 21.7, alongside a larger market cap of $26.5 billion compared to $11 billion.
- Recent AI-focused developments, including partnerships with Google Cloud and OpenAI, have bolstered sentiment around CTSH, while JKHY maintains solid fundamentals amid a valuation pullback.
- Analysts project significant upside for both, with average price targets implying over 30% potential gains from current levels near $55 for CTSH and $151 for JKHY.
- JKHY exhibits lower volatility with a beta of 0.72 compared to CTSH's 0.98, appealing to risk-averse investors in financial technology.
Introduction
This stock comparison examines CTSH and JKHY, two established players in information technology services. Cognizant provides broad IT consulting and digital solutions, while Jack Henry specializes in software and payment processing for financial institutions. Traders seeking exposure to technology amid shifting market dynamics, and investors evaluating relative performance in IT services, will find value in analyzing their business models, recent momentum, and valuation metrics. With both stocks navigating recent pullbacks, this head-to-head highlights contrasts in growth drivers and risk profiles for informed decision-making.
CTSH Overview and Recent Performance
Cognizant Technology Solutions Corporation (CTSH) is a multinational IT services firm focused on digital transformation, cloud, and AI solutions for enterprises across industries. In recent weeks, the stock has traded near its 52-week low of $54.26, hovering around $55, reflecting a roughly 14% decline since its latest earnings report amid broader sector rotation. Sentiment has been influenced positively by AI advancements, including new U.S. patents for its AI Lab, collaborations with Google Cloud on agentic AI for retail, and a partnership with OpenAI to enhance software engineering via Codex. These catalysts underscore CTSH's pivot toward high-growth AI applications, supporting revenue growth of nearly 7%. Trading volume remains moderate, with a beta near 1 indicating market-aligned volatility, while its low P/E of 12.2 signals undervaluation relative to EPS of $4.56.
JKHY Overview and Recent Performance
Jack Henry & Associates, Inc. (JKHY) delivers core processing platforms, payment services, and digital solutions tailored to community banks and credit unions. The stock, currently around $151, has pulled back from its 52-week high of $193, down about 13% over recent four-week periods and 17% year-to-date, amid market concerns over banking sector pressures. Key developments include the release of its 2026 Sustainability Report and analyst views positioning it as undervalued with robust fundamentals. Growth metrics highlight strong free cash flow expansion at 62%, bolstering EPS estimates for fiscal 2026 around $6.67. With a P/E of 21.7 and lower beta of 0.72, JKHY appeals for its stability, though risks from industry consolidation temper enthusiasm. Upcoming earnings on May 6 are anticipated to provide further clarity on service demand.
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Head-to-Head Comparison
CTSH and JKHY share IT services exposure but diverge in focus: CTSH's broad enterprise consulting contrasts JKHY's niche fintech SaaS for banks, exposing the latter to financial sector cycles like consolidation risks. Growth drivers differ, with CTSH leveraging AI catalysts for 7% revenue expansion and JKHY posting superior free cash flow growth at 62% but slower overall earnings trajectory. Recent momentum favors neither, as both lag amid tech pullbacks, though CTSH's YTD gains outpace JKHY's declines. Valuation tilts to CTSH's cheaper P/E and larger scale, versus JKHY's premium for stability (lower beta). Market sentiment reflects analyst optimism, with CTSH's AI edge versus JKHY's recurring revenue model presenting trade-offs in risk and upside potential.
Tickeron AI Verdict
Tickeron’s AI models currently lean toward CTSH due to its compelling valuation, consistent trend in AI-driven catalysts, and higher implied upside from analyst targets relative to recent lows. While JKHY offers defensive qualities, CTSH's positioning in high-growth AI applications provides probabilistic edge in the evolving tech landscape, though both warrant monitoring for sector shifts.
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 JKHY is a StrongBuy.
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 whileJKHY’s FA Score has 1 green FA rating(s).
- CTSH’s FA Score: 1 green, 4 red.
- JKHY’s FA Score: 1 green, 4 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 JKHY’s TA Score has 4 bullish TA indicator(s).
- CTSH’s TA Score: 4 bullish, 5 bearish.
- JKHY’s TA Score: 4 bullish, 4 bearish.
Price Growth
CTSH (@Information Technology Services) experienced а -8.40% price change this week, while JKHY (@Information Technology Services) price change was +6.95% for the same time period.
The average weekly price growth across all stocks in the @Information Technology Services industry was -2.73%. For the same industry, the average monthly price growth was -10.77%, and the average quarterly price growth was +56.51%.
Reported Earning Dates
CTSH is expected to report earnings on Aug 05, 2026.
JKHY is expected to report earnings on Aug 25, 2026.
Industries' Descriptions
@Information Technology Services (-2.73% 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 | JKHY | CTSH / JKHY | |
| Capitalization | 18.9B | 9.59B | 197% |
| EBITDA | 4.06B | 889M | 457% |
| Gain YTD | -51.184 | -25.417 | 201% |
| P/E Ratio | 9.07 | 17.24 | 53% |
| Revenue | 21.4B | 2.52B | 851% |
| Total Cash | 1.52B | 20.6M | 7,364% |
| Total Debt | 1.09B | 90M | 1,213% |
CTSH | JKHY | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 54 | 27 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 8 Undervalued | 11 Undervalued | |
PROFIT vs RISK RATING 1..100 | 100 | 100 | |
SMR RATING 1..100 | 57 | 39 | |
PRICE GROWTH RATING 1..100 | 66 | 63 | |
P/E GROWTH RATING 1..100 | 90 | 90 | |
SEASONALITY SCORE 1..100 | 50 | n/a |
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 in the same range as JKHY (11). This means that CTSH’s stock grew similarly to JKHY’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 JKHY (100). This means that CTSH’s stock grew similarly to JKHY’s over the last 12 months.
JKHY's SMR Rating (39) in the Information Technology Services industry is in the same range as CTSH (57). This means that JKHY’s stock grew similarly to CTSH’s over the last 12 months.
JKHY's Price Growth Rating (63) in the Information Technology Services industry is in the same range as CTSH (66). This means that JKHY’s stock grew similarly to CTSH’s over the last 12 months.
JKHY's P/E Growth Rating (90) in the Information Technology Services industry is in the same range as CTSH (90). This means that JKHY’s stock grew similarly to CTSH’s over the last 12 months.
| CTSH | JKHY | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 60% | 3 days ago 53% |
| Stochastic ODDS (%) | 3 days ago 54% | 3 days ago 60% |
| Momentum ODDS (%) | 3 days ago 53% | 3 days ago 37% |
| MACD ODDS (%) | 3 days ago 49% | 3 days ago 40% |
| TrendWeek ODDS (%) | 3 days ago 58% | 3 days ago 48% |
| TrendMonth ODDS (%) | 3 days ago 62% | 3 days ago 57% |
| Advances ODDS (%) | 28 days ago 53% | 3 days ago 47% |
| Declines ODDS (%) | 6 days ago 55% | 12 days ago 55% |
| BollingerBands ODDS (%) | 3 days ago 61% | 3 days ago 48% |
| Aroon ODDS (%) | 4 days ago 54% | 3 days ago 61% |
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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% | +2.25% | ||
| ACN - CTSH | 81% Closely correlated | +2.51% | ||
| EPAM - CTSH | 71% Closely correlated | +4.28% | ||
| INFY - CTSH | 68% Closely correlated | +1.99% | ||
| GLOB - CTSH | 67% Closely correlated | +8.29% | ||
| GIB - CTSH | 66% Closely correlated | +3.57% | ||
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JKHY and
Correlation & Price change
A.I.dvisor indicates that over the last year, JKHY has been loosely correlated with FIS. These tickers have moved in lockstep 61% of the time. This A.I.-generated data suggests there is some statistical probability that if JKHY jumps, then FIS could also see price increases.
| Ticker / NAME | Correlation To JKHY | 1D Price Change % | ||
|---|---|---|---|---|
| JKHY | 100% | +4.89% | ||
| FIS - JKHY | 61% Loosely correlated | +1.88% | ||
| EXLS - JKHY | 52% Loosely correlated | +3.09% | ||
| CTSH - JKHY | 51% Loosely correlated | +2.25% | ||
| BR - JKHY | 49% Loosely correlated | +1.23% | ||
| IT - JKHY | 48% Loosely correlated | +6.58% | ||
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