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 1.1%. By the end of trading, Infosys fell 73 cents (-1.4%) to $51.17 on light volume. Throughout the day, 1.3 million shares of Infosys exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in price between $51.09-$51.82 after having opened the day at $51.59 as compared to the previous trading day's close of $51.90. Other companies within the Technology sector that declined today were: Synacor ( SYNC), down 38%, Ebix ( EBIX), down 26.6%, Deltathree ( DDDC), down 15.6%, and Rubicon Technology ( RBCN), down 14.7%.
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Infosys Limited provides business consulting, technology, engineering, and outsourcing services worldwide. Infosys has a market cap of $29.86 billion and is part of the computer software & services industry. The company has a P/E ratio of 17.4, below the S&P 500 P/E ratio of 17.7. Shares are up 23.5% year to date as of the close of trading on Wednesday. Currently there are three analysts that rate Infosys a buy, three analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Infosys as a buy. 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, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Parkervision ( PRKR), up 73.3%, Superconductor Technologies ( SCON), up 34.7%, CollabRx ( CLRX), up 30.3%, and Responsys ( MKTG), up 21.2%, were all gainers within the technology sector with Clearwire ( CLWR) 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).

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