Score 9.1 (out of 10): INFOSYS LTD-SP ADR poised to seasonally rally by +11.2% during the next 90 days.

58

What’s Going On Here?

INFOSYS, the India based IT consulting and software services company, has seen numerous upgrades on its stock price. Analysts expect shares to return close to +14% with 92% of the 49 analysts covering the stock expecting positive stock returns. INFOSYS also announced scrapping the company’s COO position, making the structure leaner.

Why Now?

INFOSYS LTD-SP ADR indicates an interesting 90 days seasonal set up. During similar occasions, INFOSYS LTD-SP ADR shares had a median return of +11.2% – based on 10 historical occasions with 9 of those showing positive returns (90%). This buy signal for INFOSYS LTD-SP ADR received a high score of 9.1 (out of 10). This insight was generated with last price of 23.44.

What’s This Company About?

INFOSYS LTD-SP ADR is in the Computer Services business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 0.9% more (average). Ticker symbol: INFO IN.

What’s My Risk / Reward and Time Horizon?

We found 90 days to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 26.08 (+11.2%) has been reached. Based on INFOSYS LTD-SP ADR’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 22.24 (last price at 23.44), which is equivalent to a -5.1% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

12.6% (December-2021), 5.8% (December-2020), 9.7% (December-2019), 14.3% (December-2018), 2.2% (December- 2017), 15.8% (December-2016), 9.9% (December-2015), 12.7% (December-2014), 25.6% (December-2013), 0% (December-2012)

Historical Chart:

———————————————————————

Summary:

NameINFOSYS LTD-SP ADR
ViewUp
Star (1 to 10)9.1
Target+11.2%
Time90 days
Hit Rate90%

Leave a Reply