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 up 1.0%. By the end of trading, Infosys fell $0.67 (-1.6%) to $41.58 on light volume. Throughout the day, 1,510,727 shares of Infosys exchanged hands as compared to its average daily volume of 2,102,100 shares. The stock ranged in price between $41.48-$41.99 after having opened the day at $41.82 as compared to the previous trading day's close of $42.25. Other companies within the Technology sector that declined today were: Mediabistro ( MBIS), down 11.4%, Webmedia Brands ( WEBM), down 11.4%, LookSmart ( LOOK), down 11.0% and Linktone ( LTON), down 9.9%.
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Infosys Limited provides business consulting, technology, engineering, and outsourcing services worldwide. Infosys has a market cap of $24.0 billion and is part of the computer software & services industry. The company has a P/E ratio of 14.0, below the S&P 500 P/E ratio of 17.7. Shares are down 0.1% year to date as of the close of trading on Monday. Currently there are 3 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 a generally disappointing performance in the stock itself, unimpressive growth in net income and disappointing return on equity.

On the positive front, Applied Micro Circuits Corporation ( AMCC), down 20.0%, Vitesse Semiconductor ( VTSS), down 19.6%, Net Element International ( NETE), down 16.9% and Datawatch Corporation ( DWCH), down 16.7% , were all gainers within the technology sector with Research in Motion ( BBRY) 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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