PQUS0.360%
as of Jul 21
CTSH
GrowthCOGNIZANT TECH SOLUTIONS CORP
Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services; Health Sciences; Products and Resources; and Communications, Media and Technology. The company provides services including artificial intelligence (AI) and other technology services and solutions, consulting, application development, systems integration, quality engineering and assurance, engineering research and development, application maintenance, infrastructure, security, and business process services and automation.
Close · 3M
-30.95%
Held by 1 AI ETF
Signal performance
Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.
Buy signals1
Win rate0% (0/1)
Avg buy return-15.61%
PQUS · Weight decrease · 2d
Pictet Asset Management's PQUS, which utilizes an AI ranking system to manage its approximately 165 US large-cap holdings, has recorded a consecutive decrease in CTSH's weight. The fund's periodic rebalancing, not daily, indicates the AI's updated assessment has consistently de-prioritized Cognizant Tech Solutions within its sector-balanced and concentration-controlled portfolio. This adjustment aligns with CTSH’s recent market performance, where the stock has seen its 30-day return fall by 19.3%. Despite a current PER of 8.94, the AI system likely reacted to sustained negative price momentum rather than solely value metrics, contributing to the reduced allocation.
weight 0.330% → 0.310% (-0.020 pp)·stock down 23.8% in the 30 days before
Jul 2·entry $41.99·now $44.64
+6.31%
since Jul 2
PQUS · Weight decrease · 2d
Cognizant Tech Solutions (CTSH) closed at $43.70, residing at the absolute low of its 52-week range and down 45.6% over the past year, indicating a significant and sustained price depreciation leading into mid-2026. Given PQUS's AI ranking system for US large-caps and its periodic rebalancing, this severe market underperformance likely prompted the system to downgrade CTSH's standing within Pictet Asset Management’s quantitative framework. Despite a 14.79% ROE and 6.55% revenue growth, the stock's 9.29 PER and 2.67 PBR, coupled with the steep 30-day return of -15.9%, suggest the AI detected deteriorating forward sentiment or increased risk, leading to the consecutive weight decrease from 0.1600% to 0.1400% on June 19-20. The fund’s measured turnover and sector-balance rules would facilitate this gradual reduction of CTSH's allocation within the Information Technology sector, rather than an abrupt change.
weight 0.160% → 0.140% (-0.020 pp)·stock down 14.1% in the 30 days before
Jun 20·entry $41.83·now $44.64
+6.72%
since Jun 20
PQUS · Weight increase · 2d
The AI ETF likely increased its weight in CTSH due to its attractive valuation (PER 11.73, PBR 2.67) and strong profitability (ROE 14.84%) coupled with consistent revenue growth (6.95%). This suggests the AI identifies CTSH as a fundamentally sound, undervalued company in the IT sector, signaling a conviction in its potential for steady returns or a re-rating. Retail investors should recognize that AI-driven funds prioritize value opportunities in established companies with solid fundamentals over solely high-growth, high-multiple stocks. This approach suggests a balanced strategy focusing on quality companies at reasonable valuations for long-term portfolio stability and appreciation.
weight 0.060% → 0.240% (+0.180 pp)·stock down 13.8% in the 30 days before
Apr 30·entry $52.90·now $44.64Fresh
-15.61%
since Apr 30
LQAI · Exit · 1d
The AI ETF likely divested from CTSH due to its modest revenue growth and relatively low PER, suggesting the AI identified more attractive growth or risk-adjusted return opportunities within its investment universe. The gradual reduction in weight before full removal indicates a systematic portfolio rebalancing based on evolving market conditions or the fund's investment criteria. Retail investors should observe such systematic exits by AI funds as a signal to re-evaluate their own holdings for potential shifts in long-term prospects or diminishing competitive advantage.
weight 0.110% → 0 (exited)·stock down 21.1% in the 30 days before
May 12·entry $47.73·now $44.64
-6.47%
since May 12
Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.
Buffett-style framework
Too hard to callas of Jun 21
The AI ETF PQUS shows a trend of decreasing its weight in Cognizant Technology Solutions. This action aligns with the framework's 'Too Hard' verdict, which suggests caution regarding the company's long-term predictability due to the dynamic nature of its industry.
- Circle of CompetenceThe IT consulting industry, with its rapid technological shifts and competitive pressures, makes long-term predictability of unit economics and cash flows genuinely difficult to project.
- Economic MoatAnalysis declined as the company falls outside the circle of competence.
- ManagementAnalysis declined as the company falls outside the circle of competence.
- Financial HealthAnalysis declined as the company falls outside the circle of competence.
- Margin of SafetyAnalysis declined as the company falls outside the circle of competence.
Cognizant Technology Solutions is deemed 'Too Hard' to analyze effectively within this value investing framework. The inherent unpredictability of the IT consulting industry's unit economics and its constant technological evolution make long-term cash flow projections unreliable. Consequently, a detailed assessment of its economic moat, management, financial health, and margin of safety cannot be confidently performed.
Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.