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

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 lower today making it today's featured Computer Software & Services laggard. The industry as a whole was unchanged today. By the end of trading, Infosys fell 67 cents (-1.5%) to $43.31 on light volume. Throughout the day, 1.4 million shares of Infosys exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in price between $42.98-$43.56 after having opened the day at $43.38 as compared to the previous trading day's close of $43.98. Other companies within the Computer Software & Services industry that declined today were: Analysts International ( ANLY), down 9.8%, THQ ( THQI), down 9.4%, Webmedia Brands ( WEBM), down 7.2%, and Wave Systems Corporation ( WAVX), down 7.1%.
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Infosys Limited provides business consulting, technology, engineering, and outsourcing services worldwide. Infosys has a market cap of $24.96 billion and is part of the technology sector. The company has a P/E ratio of 14.6, above the average computer software & services industry P/E ratio of 14.1 and below the S&P 500 P/E ratio of 17.7. Shares are down 15% year to date as of the close of trading on Monday. 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 reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and feeble growth in the company's earnings per share.

On the positive front, BOS Better Online Solutions ( BOSC), up 20.7%, Chyron Corporation ( CHYR), up 7%, Wireless Ronin Technologies ( RNIN), up 7%, and China Mobile Games and Entertainment Group ( CMGE), up 6.9%, were all gainers within the computer software & services industry with Check Point Software Technologies ( CHKP) being today's featured computer software & services industry leader.

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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