Strong buy signals on Conduent as it soars on plans to divest transportation unit
07/04/2022 16:05
** Conduent Inc CNDT.O shares rise as much as 18% to $5.73
** The business services provider said on Thursday that it
plans to separate its transportation business through either a
sale or a spin-off
** 25-day moving average crossed above 50-day moving
average, forming a 'golden cross' and generating 'buy' signal
** Volume of call options is 10 times put options, signaling
bullish traders expect prices to rise; call options are
derivative contracts, which give a holder the option to buy an
underlying stock at a pre-defined price and date
** Stock trading at forward P/E multiple of 12.30,
relatively undervalued with peers Cognizant Technology Solutions
Corp CTSH.N 18.36x, Paychex Inc PAYX.O 35.03x, Accenture
ACN.N 29.14x, International Business Machines Corp IBM.N
12.83x and DXC Technology Co DXC.N 6.92x
** New Jersey-headquartered Conduent was formed in 2017 as a
divestiture from Xerox Holdings Corp XRX.O
** Including session gains, CNDT up 2.7% YTD
(Reporting by Mehnaz Yasmin in Bengaluru)
((Mehnaz.Yasmin@thomsonreuters.com))