Cognizant Tech Solutions (CTSH) pushed its Relative Strength Rating into the 80-plus percentile on Thursday, climbing to 81 from 77 the prior day.
At a Glance
- CTSH RS Rating jumped to 81, up from 77
- Stock has now risen for three straight sessions
- Shares up roughly 6% so far this week
- Why it matters: Strong technical momentum could attract growth-oriented investors
The move marks a notable acceleration in the IT services provider’s technical performance. The Relative Strength Rating, a 1-to-99 measure tracked by News Of Los Angeles, gauges a stock’s price performance over the past 12 months against all other publicly traded companies.
RS Rating Explained
Scores above 80 indicate the equity has outperformed four-fifths of the market during the look-back period. CTSH now sits in that top tier after lagging below the threshold for much of the spring.
Traders often watch for RS upgrades as confirmation that institutional money is flowing into a name. A jump of four points in a single session is relatively uncommon and suggests renewed buying pressure.
Weekly Winning Streak
Cognizant shares have advanced every day this week, adding about 6% in aggregate. The rally has lifted the stock above its 50-day moving average for the first time since late April.
Volume has also picked up. Daily turnover has exceeded the stock’s 50-day average for four consecutive sessions, indicating broad participation in the move.
Chart Snapshot
| Metric | Current | Prior Week |
|---|---|---|
| RS Rating | 81 | 69 |
| Price vs. 50-day | +1.8% | -3.2% |
| Weekly gain | 6% | -2.1% |
The table highlights the sharp reversal in both relative and absolute performance.
Earnings Backdrop
The technical strength unfolds ahead of Cognizant’s next quarterly report, due in early August. Consensus expects earnings per share of $1.04, flat versus the year-ago quarter, on revenue of $4.9 billion.
Management guided full-year revenue to a range of $19.3 billion to $19.7 billion, implying low-single-digit growth. Any upside surprise could fuel further RS gains.
Sector Context
IT services peers have struggled this year amid client budget tightening. The S&P 500 software and services sub-index is up just 2% year to date, trailing the broader market.
Cognizant’s recent outperformance therefore stands out. The stock is now beating 81% of all U.S. equities, a marked shift from its prior middle-of-the-pack status.
Key Takeaways
- CTSH RS Rating leapt to 81, signaling strong relative momentum
- Shares have rallied 6% this week on above-average volume
- Stock reclaimed its 50-day line ahead of August earnings
- Outperformance contrasts with sluggish IT services group
