Trade-Ideas LLC identified Infosys ( INFY) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Infosys as such a stock due to the following factors:

  • INFY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $70.3 million.
  • INFY has traded 869,367 shares today.
  • INFY is trading at 3.43 times the normal volume for the stock at this time of day.
  • INFY is trading at a new high 3.03% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on INFY:

Infosys Limited, together with its subsidiaries, provides business consulting, technology, engineering, and outsourcing services in North America, Europe, India, and internationally. The stock currently has a dividend yield of 3.6%. INFY has a PE ratio of 21. Currently there are 3 analysts that rate Infosys a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Infosys has been 4.4 million shares per day over the past 30 days. Infosys has a market cap of $37.0 billion and is part of the technology sector and computer software & services industry. Shares are up 2.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant 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, growth in earnings per share and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 27.0%. Since the same quarter one year prior, revenues slightly increased by 8.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • INFY has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.37, which clearly demonstrates the ability to cover short-term cash needs.
  • INFOSYS LTD's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, INFOSYS LTD increased its bottom line by earning $0.88 versus $0.77 in the prior year. This year, the market expects an improvement in earnings ($0.89 versus $0.88).
  • 40.07% is the gross profit margin for INFOSYS LTD which we consider to be strong. Regardless of INFY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, INFY's net profit margin of 21.70% compares favorably to the industry average.

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