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 0.3%. By the end of trading, Infosys rose $0.75 (1.7%) to $43.95 on average volume. Throughout the day, 2,669,272 shares of Infosys exchanged hands as compared to its average daily volume of 2,227,800 shares. The stock ranged in a price between $43.07-$44.11 after having opened the day at $43.20 as compared to the previous trading day's close of $43.20. Other companies within the Computer Software & Services industry that increased today were: Interactive Intelligence Group ( ININ), up 19.0%, Responsys ( MKTG), up 12.8%, Helios and Matheson Information Technology ( HMNY), up 11.6% and Digimarc Corporation ( DMRC), up 6.7%.
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Infosys Limited provides business consulting, technology, engineering, and outsourcing services worldwide. Infosys has a market cap of $24.8 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 2.1% year to date as of the close of trading on Monday. Currently there are 2 analysts that rate Infosys a buy, 3 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 poor profit margins, a generally disappointing performance in the stock itself and unimpressive growth in net income.

On the negative front, TSR ( TSRI), down 10.0%, TigerLogic Corporation ( TIGR), down 7.8%, Attunity ( ATTU), down 6.5% and Glu Mobile ( GLUU), down 6.4% , were all laggards within the computer software & services industry with Microsoft Corporation ( MSFT) 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).

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