Stock of the Day

September 6, 2021

Infosys (INFY)

$21.17
-$0.19 (-0.9%)
Market Cap: $88.43B

About Infosys

Infosys Ltd. is a digital services and consulting company, which engages in the provision of end-to-end business solutions. It operates through the following segments: Financial Services, Retail, Communication, Energy, Utilities, Resources, and Services, Manufacturing, Hi-Tech, Life Sciences, and All Other. The company was founded by Dinesh Krishnan Swamy, Senapathy Gopalakrishnan, Narayana Ramarao Nagavara Murthy, Raghavan N. S., Ashok Arora, Nandan M. Nilekani, and S. D. Shibulal on July 2, 1981 and is headquartered in Bangalore, India.

Infosys Bull Case

Here are some ways that investors could benefit from investing in Infosys Limited:

  • Current stock price is $21.95, showing a recent increase of 0.6%, indicating positive market sentiment.
  • Infosys Limited reported earnings per share (EPS) of $0.19, meeting consensus estimates, which reflects stable financial performance.
  • The company has a strong return on equity of 31.60%, suggesting effective management and profitability relative to shareholder equity.
  • Analysts have recently upgraded the stock from a "hold" to a "buy" rating, indicating growing confidence in the company's future performance.
  • With a market cap of $90.89 billion, Infosys Limited is positioned as a significant player in the digital services and consulting sector, which may attract institutional investors.

Infosys Bear Case

Investors should be bearish about investing in Infosys Limited for these reasons:

  • The average target price set by analysts is $20.22, which is below the current stock price, suggesting limited upside potential.
  • Infosys Limited has a P/E ratio of 27.78, which may indicate that the stock is overvalued compared to its earnings.
  • Some analysts have rated the stock as a "sell," reflecting concerns about its future performance amidst market volatility.
  • The company has a P/E/G ratio of 3.56, which suggests that the stock may be expensive relative to its growth rate, potentially deterring growth-focused investors.
  • Recent fluctuations in trading volume, with 9,751,702 shares traded compared to an average of 9,174,001, may indicate uncertainty among investors.

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