Cognizant Technology Stock Forecast - Polynomial Regression

CTSH Stock  USD 81.44  0.80  0.99%   
The Polynomial Regression forecasted value of Cognizant Technology Solutions on the next trading day is expected to be 82.06 with a mean absolute deviation of 1.22 and the sum of the absolute errors of 74.36. Cognizant Stock Forecast is based on your current time horizon. We recommend always using this module together with an analysis of Cognizant Technology's historical fundamentals, such as revenue growth or operating cash flow patterns.
  
As of now, Cognizant Technology's Receivables Turnover is increasing as compared to previous years. The Cognizant Technology's current Asset Turnover is estimated to increase to 1.17, while Inventory Turnover is projected to decrease to 16.18. . The Cognizant Technology's current Common Stock Shares Outstanding is estimated to increase to about 608.7 M. The Cognizant Technology's current Net Income Applicable To Common Shares is estimated to increase to about 2.8 B.
Cognizant Technology polinomial regression implements a single variable polynomial regression model using the daily prices as the independent variable. The coefficients of the regression for Cognizant Technology Solutions as well as the accuracy indicators are determined from the period prices.

Cognizant Technology Polynomial Regression Price Forecast For the 12th of December 2024

Given 90 days horizon, the Polynomial Regression forecasted value of Cognizant Technology Solutions on the next trading day is expected to be 82.06 with a mean absolute deviation of 1.22, mean absolute percentage error of 2.46, and the sum of the absolute errors of 74.36.
Please note that although there have been many attempts to predict Cognizant Stock prices using its time series forecasting, we generally do not recommend using it to place bets in the real market. The most commonly used models for forecasting predictions are the autoregressive models, which specify that Cognizant Technology's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

Cognizant Technology Stock Forecast Pattern

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Cognizant Technology Forecasted Value

In the context of forecasting Cognizant Technology's Stock value on the next trading day, we examine the predictive performance of the model to find good statistically significant boundaries of downside and upside scenarios. Cognizant Technology's downside and upside margins for the forecasting period are 80.68 and 83.44, respectively. We have considered Cognizant Technology's daily market price to evaluate the above model's predictive performance. Remember, however, there is no scientific proof or empirical evidence that traditional linear or nonlinear forecasting models outperform artificial intelligence and frequency domain models to provide accurate forecasts consistently.
Market Value
81.44
82.06
Expected Value
83.44
Upside

Model Predictive Factors

The below table displays some essential indicators generated by the model showing the Polynomial Regression forecasting method's relative quality and the estimations of the prediction error of Cognizant Technology stock data series using in forecasting. Note that when a statistical model is used to represent Cognizant Technology stock, the representation will rarely be exact; so some information will be lost using the model to explain the process. AIC estimates the relative amount of information lost by a given model: the less information a model loses, the higher its quality.
AICAkaike Information Criteria119.0086
BiasArithmetic mean of the errors None
MADMean absolute deviation1.2191
MAPEMean absolute percentage error0.0157
SAESum of the absolute errors74.3629
A single variable polynomial regression model attempts to put a curve through the Cognizant Technology historical price points. Mathematically, assuming the independent variable is X and the dependent variable is Y, this line can be indicated as: Y = a0 + a1*X + a2*X2 + a3*X3 + ... + am*Xm

Predictive Modules for Cognizant Technology

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Cognizant Technology. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Cognizant Technology's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Hype
Prediction
LowEstimatedHigh
78.6780.0581.43
Details
Intrinsic
Valuation
LowRealHigh
74.3775.7588.07
Details
Bollinger
Band Projection (param)
LowMiddleHigh
72.6777.4882.28
Details
26 Analysts
Consensus
LowTargetHigh
65.9372.4580.42
Details

Other Forecasting Options for Cognizant Technology

For every potential investor in Cognizant, whether a beginner or expert, Cognizant Technology's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. Cognizant Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in Cognizant. Basic forecasting techniques help filter out the noise by identifying Cognizant Technology's price trends.

Cognizant Technology Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Cognizant Technology stock to make a market-neutral strategy. Peer analysis of Cognizant Technology could also be used in its relative valuation, which is a method of valuing Cognizant Technology by comparing valuation metrics with similar companies.
 Risk & Return  Correlation

Cognizant Technology Technical and Predictive Analytics

The stock market is financially volatile. Despite the volatility, there exist limitless possibilities of gaining profits and building passive income portfolios. With the complexity of Cognizant Technology's price movements, a comprehensive understanding of forecasting methods that an investor can rely on to make the right move is invaluable. These methods predict trends that assist an investor in predicting the movement of Cognizant Technology's current price.

Cognizant Technology Market Strength Events

Market strength indicators help investors to evaluate how Cognizant Technology stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Cognizant Technology shares will generate the highest return on investment. By undertsting and applying Cognizant Technology stock market strength indicators, traders can identify Cognizant Technology Solutions entry and exit signals to maximize returns.

Cognizant Technology Risk Indicators

The analysis of Cognizant Technology's basic risk indicators is one of the essential steps in accurately forecasting its future price. The process involves identifying the amount of risk involved in Cognizant Technology's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting cognizant stock prices, we also provide a set of basic risk indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Currently Active Assets on Macroaxis

When determining whether Cognizant Technology offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Cognizant Technology's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Cognizant Technology Solutions Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Cognizant Technology Solutions Stock:
Is IT Consulting & Other Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cognizant Technology. If investors know Cognizant will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cognizant Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.125
Dividend Share
1.2
Earnings Share
4.52
Revenue Per Share
38.96
Quarterly Revenue Growth
0.03
The market value of Cognizant Technology is measured differently than its book value, which is the value of Cognizant that is recorded on the company's balance sheet. Investors also form their own opinion of Cognizant Technology's value that differs from its market value or its book value, called intrinsic value, which is Cognizant Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cognizant Technology's market value can be influenced by many factors that don't directly affect Cognizant Technology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cognizant Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cognizant Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cognizant Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.