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Why Infosys (INFY) Could Be Positioned for a Surge

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Infosys Limited (INFY - Free Report) is a leader in next-generation digital services and consulting that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on INFY’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Infosys could be a solid choice for investors

Current Quarter Estimates for INFY

In the past 30 days, four estimates have gone higher for Infosys while none has gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 12 cents a share 30 days ago, to 14 cents today, a move of 16.7%.

Current Year Estimates for INFY

Meanwhile, Infosys’ current year figures are also looking quite promising, with six estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, increasing from 50 cents per share 30 days ago to 54 cents per share today, an increase of 8%.

Infosys Limited Price and Consensus

Infosys Limited Price and Consensus

Infosys Limited price-consensus-chart | Infosys Limited Quote

Bottom Line

The stock has also started to move higher lately, adding 32.6% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So, investors may want to consider this Zacks Rank #2 (Buy) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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