Infosys Ltd (INFY): Today's Featured Computer Software & Services Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Infosys ( INFY) pushed the Computer Software & Services industry higher today making it today's featured computer software & services winner. The industry as a whole closed the day up 0.2%. By the end of trading, Infosys rose $1.35 (2.9%) to $48.22 on average volume. Throughout the day, 2.5 million shares of Infosys exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in a price between $47.48-$48.33 after having opened the day at $48 as compared to the previous trading day's close of $46.87. Other companies within the Computer Software & Services industry that increased today were: E2open ( EOPN), up 6.7%, Take-Two Interactive Software ( TTWO), up 6.3%, MakeMusic ( MMUS), up 6.1%, and Bridgeline Digital ( BLIN), up 5.3%.
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Infosys Limited provides business consulting, technology, engineering, and outsourcing services worldwide. Infosys has a market cap of $27.12 billion and is part of the technology sector. The company has a P/E ratio of 15.8, above the average computer software & services industry P/E ratio of 15.5 and below the S&P 500 P/E ratio of 17.7. Shares are down 8.8% year to date as of the close of trading on Wednesday. Currently there are three analysts that rate Infosys a buy, one analyst rates it a sell, and 12 rate it a hold.

TheStreet Ratings rates Infosys as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

On the negative front, Onstream Media Corporation ( ONSM), down 10.7%, DynaVox ( DVOX), down 9.9%, Net Element ( NETE), down 9.6%, and Ninetowns Technology Group Company ( NINE), down 6.1%, were all laggards within the computer software & services industry with Cerner Corporation ( CERN) being today's computer software & services industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer software & services industry could consider iShares S&P NA Tech Software Idx ( IGV) while those bearish on the computer software & services industry could consider ProShares Ultra Short Technology ( REW).

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