Cognizant shares fall 30% amid AI and visa concerns but valuation looks attractive at 12x P/E.

Cognizant's stock has dropped over 30% year-to-date due to investor worries about AI disrupting its traditional consulting model and tighter H-1B visa rules increasing costs. However, these concerns may be exaggerated as the company is not heavily reliant on low-value work, which AI could potentially enhance with new services. Trading at a price-to-earnings ratio of 12 and offering an 8.8% free cash flow yield, Cognizant presents an appealing valuation compared to peers and its historical levels. The article suggests a cautious buy stance on the stock given its fundamentals and valuation.