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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
- CTSH is a global IT services and consulting firm pivoting toward AI-led transformation, while JKHY is a financial technology provider serving banks and credit unions.
- CTSH has shown strong recent momentum, rebounding sharply over the past quarter, though it remains down year to date.
- JKHY combines highly stable recurring revenue with record competitive core wins but has seen its share price compress on margin concerns.
- The two companies have fundamentally different risk profiles: CTSH offers cyclical upside, while JKHY offers durable, subscription-like earnings.
Introduction
This stock comparison examines two technology-oriented businesses that rarely appear side by side. Cognizant Technology Solutions (CTSH) is a multinational IT services and consulting company, while Jack Henry & Associates (JKHY) is a financial technology provider powering banks and credit unions. Despite operating in adjacent technology markets, their business models, growth drivers, and risk characteristics differ meaningfully. Growth-oriented traders may find CTSH's AI-driven repositioning compelling, whereas income and stability-focused investors may favor JKHY's recurring revenue. Understanding the relative performance and market positioning of each helps clarify which profile better fits current conditions.
CTSH Overview and Recent Performance
Cognizant Technology Solutions (CTSH) provides consulting, technology, and outsourcing services globally, with revenue concentrated in financial services, health sciences, and products and resources. In recent market activity, the stock has staged a notable rebound, climbing sharply over the past three months after touching a 52-week low earlier in the year. The share price remains down year to date, reflecting a volatile first half that weighed on sentiment.
Recent earnings showed revenue growth in the mid-single digits, led by strength in financial services and large-deal bookings. Management has emphasized an "AI Builder" strategy, announcing partnerships spanning cloud, cybersecurity, and generative AI providers, and continues to execute a restructuring program known as Project Leap aimed at margin expansion. Full-year guidance points to continued revenue growth and modest adjusted operating margin expansion. These catalysts have supported the stock's recent recovery, though the IT services sector remains sensitive to discretionary spending cycles.
JKHY Overview and Recent Performance
Jack Henry & Associates (JKHY) delivers core information processing, electronic payments, and complementary solutions to financial institutions across the United States. The company's revenue model is highly recurring, with core-client retention above 99%. In its most recent fiscal year, JKHY reported record revenue and earnings growth, supported by a record number of competitive core wins, including several institutions with more than $1 billion in assets.
Despite solid operating results, the stock has traded lower in recent weeks, with shares down year to date as rising personnel and cloud-migration costs pressured near-term margins. Analysts have largely maintained positive ratings, with some recently upgrading the stock on improved valuation and "unusually high earnings visibility." Growth in processing, digital transactions, and faster payments has provided momentum, while the company continues to expand its cloud relationships and explore newer initiatives in data analytics and tokenized deposits.
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Head-to-Head Comparison
The clearest contrast between these stocks is business-model risk versus stability. CTSH depends on large client contracts and discretionary IT spending, making it more cyclical and sensitive to macro conditions. Its valuation is comparatively modest, with a price-to-earnings (P/E) ratio in the low-teens, and it offers a growing dividend. JKHY, by contrast, earns most of its revenue from recurring processing and support fees, producing steadier cash flows and a return on invested capital (ROIC, a measure of how efficiently a company uses its capital) above 20%. However, JKHY trades at a richer valuation premium, reflecting its earnings quality.
On growth drivers, CTSH is levered to enterprise AI adoption and large-deal conversion, while JKHY grows through client wins, cross-selling, and payments adoption. Recent momentum diverges: CTSH has trended higher over recent months, whereas JKHY has consolidated lower. Risk factors include demand cyclicality for CTSH and margin pressure from cloud migration costs for JKHY.
Tickeron AI Verdict
Based on observable trend consistency and relative positioning, Tickeron's AI would likely favor CTSH in the current environment. The stock's improving price trend, recovering earnings momentum in financial services, and margin-expansion catalysts present a more favorable near-term setup. JKHY offers superior earnings stability and visibility, but its recent price compression suggests the market is still digesting margin pressures. In probabilistic terms, CTSH currently shows the stronger combination of trend alignment and catalyst support, though JKHY remains an attractive stability profile for risk-averse investors.
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.
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 Hold and JKHY is a Hold.
CTSH's Indicator enters downward trend
The Aroon Indicator for CTSH entered a downward trend on October 09, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 258 similar instances where the Aroon Indicator formed such a pattern. In 159 of the 258 cases the stock moved lower. This puts the odds of a downward move at 62%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for CTSH moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 31 similar instances where the indicator moved out of overbought territory. In 16 of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at 52%.
The Momentum Indicator moved below the 0 level on October 29, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CTSH as a result. In 46 of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 57%.
The Moving Average Convergence Divergence Histogram (MACD) for CTSH turned negative on October 29, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 41 similar instances when the indicator turned negative. In 20 of the 41 cases the stock turned lower in the days that followed. This puts the odds of success at 49%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CTSH declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 61%.
CTSH broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
CTSH moved above its 50-day moving average on October 12, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for CTSH crossed bullishly above the 50-day moving average on October 16, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 57%.
The 50-day moving average for CTSH moved above the 200-day moving average on October 12, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +8.13% 3-day Advance, the price is estimated to grow further. Considering data from situations where CTSH advanced for three days, in 175 of 321 cases, the price rose further within the following month. The odds of a continued upward trend are 55%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 40 (best 1 - 100 worst), indicating steady price growth. CTSH’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 49 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 56 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 58 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.988) is normal, around the industry mean (2.796). P/E Ratio (13.639) is within average values for comparable stocks, (18.242). Projected Growth (PEG Ratio) (0.827) is also within normal values, averaging (2.284). Dividend Yield (0.021) settles around the average of (0.207) among similar stocks. P/S Ratio (1.367) is also within normal values, averaging (139.965).
The Tickeron PE Growth Rating for this company is 72 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CTSH’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
JKHY in upward trend: 10-day moving average crossed above 50-day moving average on October 27, 2026
The 10-day moving average for JKHY crossed bullishly above the 50-day moving average on October 27, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 71%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 08, 2026. You may want to consider a long position or call options on JKHY as a result. In 46 of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 53%.
The Moving Average Convergence Divergence (MACD) for JKHY just turned positive on October 09, 2026. Looking at past instances where JKHY's MACD turned positive, the stock continued to rise in 26 of 43 cases over the following month. The odds of a continued upward trend are 60%.
JKHY moved above its 50-day moving average on October 22, 2026 date and that indicates a change from a downward trend to an upward trend.
The 50-day moving average for JKHY moved above the 200-day moving average on September 28, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +2.38% 3-day Advance, the price is estimated to grow further. Considering data from situations where JKHY advanced for three days, in 171 of 325 cases, the price rose further within the following month. The odds of a continued upward trend are 53%.
The Aroon Indicator entered an Uptrend today. In 102 of 198 cases where JKHY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 52%.
Bearish Trend Analysis
The 10-day RSI Indicator for JKHY moved out of overbought territory on October 27, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 27 similar instances where the indicator moved out of overbought territory. In 13 of the 27 cases, the stock moved lower in the following days. This puts the odds of a move lower at 48%.
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where JKHY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 57%.
JKHY broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 36 (best 1 - 100 worst), indicating steady price growth. JKHY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 40 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 50 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 76 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.524) is normal, around the industry mean (2.802). P/E Ratio (23.094) is within average values for comparable stocks, (18.164). Projected Growth (PEG Ratio) (1.801) is also within normal values, averaging (2.284). Dividend Yield (0.015) settles around the average of (0.195) among similar stocks. P/S Ratio (4.500) is also within normal values, averaging (139.965).
The Tickeron Profit vs. Risk Rating rating for this company is 89 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. JKHY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock better than average.
CTSH | JKHY | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 91 | 37 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 58 Fair valued | 76 Overvalued | |
PROFIT vs RISK RATING 1..100 | 100 | 89 | |
SMR RATING 1..100 | 56 | 40 | |
PRICE GROWTH RATING 1..100 | 40 | 36 | |
P/E GROWTH RATING 1..100 | 72 | 50 | |
SEASONALITY SCORE 1..100 | 49 | 75 |
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 (58) in the Information Technology Services industry is in the same range as JKHY (76). This means that CTSH’s stock grew similarly to JKHY’s over the last 12 months.
JKHY's Profit vs Risk Rating (89) in the Information Technology Services industry is in the same range as CTSH (100). This means that JKHY’s stock grew similarly to CTSH’s over the last 12 months.
JKHY's SMR Rating (40) in the Information Technology Services industry is in the same range as CTSH (56). This means that JKHY’s stock grew similarly to CTSH’s over the last 12 months.
JKHY's Price Growth Rating (36) in the Information Technology Services industry is in the same range as CTSH (40). This means that JKHY’s stock grew similarly to CTSH’s over the last 12 months.
JKHY's P/E Growth Rating (50) in the Information Technology Services industry is in the same range as CTSH (72). This means that JKHY’s stock grew similarly to CTSH’s over the last 12 months.
| CTSH | JKHY | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 52% | 2 days ago 48% |
| Stochastic ODDS (%) | 1 day ago 54% | 2 days ago 58% |
| Momentum ODDS (%) | 1 day ago 57% | 2 days ago 53% |
| MACD ODDS (%) | 1 day ago 49% | 2 days ago 60% |
| TrendWeek ODDS (%) | 1 day ago 62% | 2 days ago 51% |
| TrendMonth ODDS (%) | 1 day ago 51% | 2 days ago 51% |
| Advances ODDS (%) | 13 days ago 55% | 2 days ago 53% |
| Declines ODDS (%) | 1 day ago 61% | 7 days ago 57% |
| BollingerBands ODDS (%) | 1 day ago 42% | 2 days ago 57% |
| Aroon ODDS (%) | 1 day ago 62% | 2 days ago 52% |
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 overvalued. 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 0 FA rating(s) are green while JKHY’s FA Score has 0 green FA rating(s).
- CTSH’s FA Score: 0 green, 5 red.
- JKHY’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 5 TA indicator(s) are bullish while JKHY’s TA Score has 7 bullish TA indicator(s).
- CTSH’s TA Score: 5 bullish, 6 bearish.
- JKHY’s TA Score: 7 bullish, 4 bearish.
Price Growth
CTSH (@Information Technology Services) experienced а -3.61% price change this week, while JKHY (@Information Technology Services) price change was +0.66% for the same time period.
The average weekly price growth across all stocks in the @Information Technology Services industry was -0.66%. For the same industry, the average monthly price growth was -3.54%, and the average quarterly price growth was -13.62%.
Reported Earning Dates
CTSH is expected to report earnings on Feb 10, 2027.
JKHY is expected to report earnings on Nov 03, 2026.
Industries' Descriptions
@Information Technology Services (-0.66% 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.
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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% | -1.08% | ||
| FIS - JKHY | 61% Loosely correlated | -2.89% | ||
| BR - JKHY | 58% Loosely correlated | -0.25% | ||
| EXLS - JKHY | 56% Loosely correlated | -0.94% | ||
| CTSH - JKHY | 53% Loosely correlated | -1.94% | ||
| IT - JKHY | 51% Loosely correlated | -13.19% | ||
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