The Relative Strength (RS) Rating for digital services and consulting company Infosys jumped into a new percentile Tuesday, with a rise from 78 to 81. The RS Rating bump for AI play Infosys stock reflects strong price movement and other outstanding ratings. However, the watchlist candidate's fundamentals need to be shored up.
Infosys stock has risen about 20% from a mid-October low of 16.21 to 19.47 Tuesday afternoon, down fractionally for the day. In addition to a strong RS Rating, its stock boasts an outstanding 90 Composite Rating, showing overall strength. And its in the Computer-Tech Services group which holds a best possible A+ Group RS Rating.
Infosys Stock Among Top 20
The upgraded 81 RS Rating puts Infosys stock into the top 19% of all stocks for price performance over the past year. History reveals that the best stocks tend to have an 80 or better RS Rating as they launch their biggest price moves.
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Infosys on its website cites a recent contract win with pharma giant Pfizer.
"The AI platform offered by Infosys was an optimum solution for this business challenge," Infosys said. "It aggregated organizational data from across the company — people, processes and legacy systems — and integrated this into a self-learning knowledge base."
Showing unusual strength recently, Infosys stock rose 11.6% in the eight-day period from Jan. 3 to Jan. 12. As of Tuesday afternoon it has risen more than 5% past an 18.18 entry in a first-stage flat base, meaning it's now out of a proper buy zone. Look for the stock to create another chance to get in like a three-weeks tight or pullback to the 50-day or 10-week line.
It's Improving But Still Needs Work
India-based Infosys stock's ratings generally shine but it needs to improve its fundamentals. It has reported mild, decreasing revenue gains over the past year, from 7% four quarters ago to 6%, 5% and 1% last quarter. During that time it recorded earning per share growth of 1%, 8%, 3% and -7%. That's why its EPS Rating is a so-so 72.
Infosys stock holds the No. 12 rank among its peers in the 60-stock Computer-Technical Services industry group. Luxembourg-based Globant and ePlus, headquartered near Washington D.C., are among the group's highest-rated stocks.
When researching the best stocks to buy and watch, a company's relative price strength is a reliable indicator.
The exclusive Relative Strength Rating from Investor's Business Daily measures market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price movement over the last 52 weeks holds up against all the other stocks in our database.
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