Infosys Ltd (INFY): Today's Featured Technology 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 Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day up 1.3%. By the end of trading, Infosys rose $1.22 (2.8%) to $44.66 on average volume. Throughout the day, 1.9 million shares of Infosys exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in a price between $44.06-$44.69 after having opened the day at $44.25 as compared to the previous trading day's close of $43.44. Other companies within the Technology sector that increased today were: BOS Better Online Solutions ( BOSC), up 70.2%, THQ ( THQI), up 38%, Inteliquent ( IQNT), up 28.8%, and OCZ Technology Group ( OCZ), up 24.4%.
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Infosys Limited provides business consulting, technology, engineering, and outsourcing services worldwide. Infosys has a market cap of $24.91 billion and is part of the computer software & services industry. The company has a P/E ratio of 14.5, below the S&P 500 P/E ratio of 17.7. Shares are down 15.1% year to date as of the close of trading on Wednesday. Currently there are three analysts that rate Infosys a buy, two analysts rate it a sell, and 11 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 negative front, Liquidity Service ( LQDT), down 13.5%, Astea International ( ATEA), down 13.2%, Kingtone Wirelessinfo Solution ( KONE), down 11.8%, and IXYS Corporation ( IXYS), down 10.1%, were all laggards within the technology sector with NVIDIA Corporation ( NVDA) being today's technology sector laggard.

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).

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