Cognizant Tumbles 30% Amid AI and Visa Concerns

Cognizant's stock has taken a hit this year, plummeting over 30% in value. Investor concerns about AI disrupting its traditional consulting model and tighter H-1B visa rules increasing costs have weighed heavily on the company.

However, some analysts argue that these worries may be overstated. Cognizant is not overly reliant on low-value work, which could potentially be enhanced with new AI services.

The company's valuation looks attractive compared to its peers and historical levels, trading at a price-to-earnings ratio of 12 and offering an 8.8% free cash flow yield.