Infosys Ltd (INFY): Today's Featured Technology 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 Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.3%. By the end of trading, Infosys fell $1.22 (-2.8%) to $42.05 on average volume. Throughout the day, 2.3 million shares of Infosys exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in price between $41.68-$42.49 after having opened the day at $42.47 as compared to the previous trading day's close of $43.27. Other companies within the Technology sector that declined today were: Superconductor Technologies ( SCON), down 34.2%, Digital Power Corporation ( DPW), down 28.3%, Spire Corporation ( SPIR), down 18.4%, and Hewlett-Packard ( HPQ), down 11.9%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Infosys Limited provides business consulting, technology, engineering, and outsourcing services worldwide. Infosys has a market cap of $24.31 billion and is part of the computer software & services industry. The company has a P/E ratio of 14.2, below the S&P 500 P/E ratio of 17.7. Shares are down 17.2% year to date as of the close of trading on Monday. Currently there are three analysts that rate Infosys a buy, two analysts rate 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 weak operating cash flow.

On the positive front, Remark Media ( MARK), up 25.6%, Aetrium Incorporated ( ATRM), up 24.5%, Eltek ( ELTK), up 19.8%, and Enphase Energy ( ENPH), up 16.7%, were all gainers within the technology sector with Skyworks Solutions ( SWKS) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

FREE for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!.
null

If you liked this article you might like

Infosys Investors Taste Disappointment for Breakfast With 7% Drop Brewing: Chart

Infosys Is Tanking Because Its Ex-CEO's Transformation Efforts Are Now in Limbo

This Is Why Tech Stocks Are Heading Into the Weekend With a Nasty Hangover

Why Did Infosys CEO Vishal Sikka Resign?