Cognizant: Cognizant Of AI Fears, But Also Of The Opportunity

Cognizant's share price has dropped sharply as AI disruption to the traditional consulting model and tighter H-1B visa rules spook investors. The concerns may be overblown. Cognizant does not appear to be heavily skewed towards lower-value work, the latter of which likely could be offset by AI-related services. At 12x P/E, and an 8.8% FCF yield, Cognizant appears to offer an interesting valuation relative to peers, historical valuation, and fundamentals. Cautious Buy.

Cognizant ( CTSH ) shares have dropped over 30% YTD and are trading at an interesting valuation amid investor concerns over AI disruption and business model disruption due to H1-B visa restrictions and costs. While these risks