I’m not in the business of market soothsaying, but the uncertainty in China and Europe, and the constant guessing of when interest rates will rise in the U.S., have set markets aflutter. This leads me to advise caution in your investment strategies.
That means making sure that you have a sufficient amount of cash on the sidelines, as Paul Goodwin, Chief Analyst for Cabot China & Emerging Markets Report, told our subscribers in this weekend’s Cabot Wealth Advisory. (www.cabot.net)
That being said, while the markets may roil for a bit, I will continue to bring you ideas and recommendations to enhance your portfolios. Some, you may buy for your long-term needs, and others may be worth a slight delay, waiting for an opportunity to purchase them at lower prices.
This tech company beat estimates and has raised forward guidance. Our second recommendation is to take partial profits on a software business. As the markets seem to be mired in uncertainty right now, please make sure to be cautious and conservative in your purchases, and keep a nice cushion of cash on the sidelines. 
Buy: Cognizant Tech Solus Cor (CTSH)
from Argus Weekly Staff Report
BUY-rated Cognizant Technology Solutions Corp. (CTSH) posted guidance-beating revenue growth in 2Q15, and increased its guidance for the full year for the second consecutive quarter. Second-quarter 2015 revenue of $3.08 billion increased 23% year-over-year. Sequential top-line growth of 6% on a percentage basis was also the strongest sequential gain in dollars ($174 million) in company history.
North American revenues grew by 26% year-over-year, and all other regions also grew despite unfavorable currency effects. Healthcare revenue increased 39% year-over-year, bolstered by good organic growth along with the TriZetto acquisition and despite renegotiation of the Health Net relationship.
Cognizant is an IT solutions company providing IT outsourcing, consulting, systems integration and a range of other outsourced services. Cognizant recognizes that customers are not seeking single-system upgrades, but are seeking to digitize the entirety of their operations in a process that may take years. The benefit of this approach is that it allows Cognizant to move beyond discreet, project-based contracts with customers to a persistent, solutions-based engagement. In turn, this is driving growth and sustainably of overall revenue at Cognizant, while revenue linearity supports margin expansion.
Whereas rivals such as Infosys or India’s Tata are seen as overly reliant on the financial services industry, Cognizant has sought to cultivate and develop the healthcare vertical in recent years.
Despite the increase in the stock price, CTSH looks attractive at current levels. Our model suggests a fair value in the mid-$70s. Our valuation matrix implies a potential risk-adjusted total return in excess of our forecast for the broad market. We are reiterating our BUY rating on CTSH to a 12-month target price of $78 (raised from $72).
Jim Kelleher, CFA, Argus Weekly Staff Report, 212-425-7500, August 17, 2015