CTSH

Cognizant Technology Solutions (CTSH) is highlighted as a stock to watch with a #3 (Hold) Zacks Rank and a VGM Score of B. The company shows strong growth prospects with a Growth Style Score of B and forecasted year-over-year earnings growth of 8.7% for the current fiscal year. One analyst revised earnings estimates upward in the last 60 days, with the Zacks Consensus Estimate at $5.74 per share and an average earnings surprise of +3.6%.

FXL is a smart beta technology ETF managed by First Trust Advisors with $2.94 billion in assets. It tracks the StrataQuant Technology Index using an equal-dollar weighted strategy to identify stocks with positive alpha potential.

With a 0.60% expense ratio, 111 holdings, and a beta of 1.26, FXL has returned 36.95% year-to-date and 34.07% over the past year. The fund is heavily concentrated in Information Technology (86.9%) with top holdings including Cognizant Technology Solutions, EPAM Systems, and Leidos Holdings.

A comparison of two IT services companies shows that Cognizant (CTSH) is the superior value option compared to Roper Technologies (ROP). Both stocks have a Zacks Rank #2 (Buy) with positive earnings outlooks, but CTSH offers better valuation metrics with a forward P/E of 9.89 versus ROP's 15.93, a PEG ratio of 1.06 versus 1.77, and a Value grade of A versus C.