Cognizant Technology (CTSH) reported %0.72 vs $0.66. Cognizant sees FY11 EPS of $2.98 vs consensus of $2.78. Cognizant is an IT outsourcer with most of its operations concentrated in India. The Indian rupee is getting stronger against euro and U.S. dollar. Wages in India are also rising rapidly. Cognizant is facing macro headwinds. Other Indian IT outsourcers such as Infosys (INFY) have already lowered their expectations.
Conservative investors may want to take advantage of the strength and sell Cognizant. If Cognizant continues to rise, it will become a candidate for a short sell. If and when it is appropriate, we will provide an actionable signal in real-time on the Real Time Feed of the ZYX Short Sell Change Alert.
