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 0.1%. By the end of trading, Infosys rose 61 cents (1.4%) to $43.29 on average volume. Throughout the day, 1.8 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 $42.68-$43.32 after having opened the day at $42.70 as compared to the previous trading day's close of $42.68. Other companies within the Computer Software & Services industry that increased today were: Kingtone Wirelessinfo Solution ( KONE), up 19.6%, Vringo ( VRNG), up 9.3%, Mitek Systems ( MITK), up 7.7%, and E2open ( EOPN), up 7%.
  • 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 $24.84 billion and is part of the technology sector. The company has a P/E ratio of 14.5, below the S&P 500 P/E ratio of 17.7. Shares are up 2.8% year to date as of the close of trading on Friday. Currently there are two 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 negative front, inContact ( SAAS), down 6.9%, Syntel ( SYNT), down 6.6%, NCI ( NCIT), down 6.2%, and Market Leader ( LEDR), down 5.8%, were all laggards within the computer software & services industry with VMWare ( VMW) 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).

HOLIDAY SPECIAL: Let Jim Cramer show you every trade he is making in his $2.5 Million portfolio. Join now for 14-days FREE. Sign up today to get e-mail alerts before every trade.
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?