Oppenheimer Has 4 Triple Play Rated IT Services Stocks to Buy

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Global macro growth concerns are keeping markets on edge to some degree, and that is making it very tough for some sectors to fight their way out of the current trading levels. The problem for many investors as we enter what is called the “late cycle” for the markets, is finding sectors with solid upside potential.

In a new research report Oppenheimer feels that the information technology services area is one the can be a late cycle outperformer for investors. The report cites the services-focused business models, improving earnings expectations and, most importantly, reasonable valuations for the top companies.

Oppenheimer likes six companies in the sector, and we picked four that are triple play rated. The triple play stocks are rated Outperform and have a positive MAER rating, which analyzes trends in revisions to the consensus estimates alongside price and fundamental information. Lastly, the stocks have an attractive technical profile.

Cognizant Technology Solutions

This tech stock is well-liked across Wall Street. Cognizant Technology Solutions Corp. (NASDAQ: CTSH) provides information technology (IT) consulting and business process outsourcing services worldwide. It operates through four segments: Financial Services; Healthcare; Manufacturing, Retail, and Logistics; and Other. And it offers consulting and technology services, such as IT strategy, program management, operations improvement, strategy and business consulting services.

Though Cognizant is based in the United States, it primarily uses an offshore workforce in India. The company is well positioned for a variety of trends in IT services, and many expect it to increase earnings well in excess of the industry average. Its solid second-quarter results that were broad based. In addition, the company raised second-half guidance and is a solid conservative technology holding to add.

The Oppenheimer price target for the stock is $76. The Thomson/First Call consensus target is $74.80. Shares closed trading on Wednesday at $64.97.

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