Cognizant Technology Solutions Corp. (CTSH)

They help companies be better through technology. It used to be cost cutting and outsourcing and now it is moving more to how to use technology to differentiate the product. They are focused on healthcare and financial services. There is quite a bit of run room in this one. There was a temporary profit warning and she bought into that.

(Top Pick Feb 6/14, Up 8.83%) IT consulting around the world. Grew net earnings more than 10% for the last 10 years in a row. They guided earning down from 14 to 10% and then later they revised earnings projection again upwards. It’s a keeper.

They do consulting in IT sort of business process outsourcing. Big in financial services but recently made an acquisition on the healthcare side. Had bought into this on an “earnings warn”, which was followed by a big pop in the stock when they did better than what they had warned. Have the ability to make companies more efficient. Historically it has been all about cost-cutting, efficiency, etc. but now it is about how to use technology to differentiate and grow your business and generate revenue. Technology has a lot of room to grow and this company is at the heart of it.

(Top Feb 06/13, Down 5.10%) He has been in for two years. They had over a dozen years of revenue growth, double digit. They lowered their guidance recently and that caused the stock to fall off.

(A Top Pick July 5/13. Up 53.2%.) Had a 2-for-1 stock split. Stock sold off because of concerns on new immigration laws in the US. Those have been watered down substantially, and the stock has responded accordingly. Still a Hold, but at the upper end of earnings where he feels comfortable.

(A Top Pick Feb 6/14. Up 1.69%.) 2-for-1 stock split. Has grown revenues and net income earnings per share at over 10% per year for the last 10 years and longer. Even through the recession of 2007-2009 it was growing at 10% plus revenues and net income earnings per share. Basically an IT consulting company. Companies are not spending money on building new plants and expanding, but are spending it on cutting costs. Trading at around 20X this year’s earnings so it still looks attractive.

One of the fastest growing companies in the world that people have not heard of. Growth of 20 times over the last dozen years. Even grew during the recession. IT outsourcing industry. Growing 16.5% per annum. PE of 20 times.

Global technology outsourcer so a lot of their employees actually do work for North American companies but reside in other countries where they have their locations. Has sold off this year over concerns about US immigration policy. Historically has traded in the 15 to 18 multiple range and right now it is down to 14X next years earnings. Still growing at 18%-20% per year. 1000+ corporate customers with a focus on the Cloud and Virtualization.