The Money Man Behind Rick Santorum: Who Is Foster S. Friess?
Savings Experiment: Snow Removal"I expect India-based Infosys (NASDAQ: INFY), one of our 'Global Core' holdings, to be one of our big winners in the year ahead," says John Christy.
The editor of the Forbes International Investing Report explains, "The company kicked off earnings reporting season with an 18% net income growth during the quarter. These earnings were in line with expectations. Of course, simply meeting expectations is never good enough for Wall Street, so INFY shares tumbled on the news.
"Infosys also revised its full-year EPS estimate upward to $1.99 per ADR, but again this wasn't good enough -- I guess some folks were expecting a bigger revision.
"The main concern continues to be the strength of the Indian rupee, which is close to a 10-year high. This is a fair point, but 18% earnings growth in the face of a stiff headwind from the rupee is pretty good in my book. And Infosys actually reported higher margins on an operating basis.
"Most importantly, we need to keep the big picture in perspective. Even the skeptics would agree that Infosys is one of the strongest and best-managed companies in the emerging markets universe."
"Yet Infosys shares have lagged almost all emerging markets year-to-date. INFY is now trading at a multiple of about 20 times next year's forecast earnings, which is as cheap as it gets for a company of this quality, and well below the multiples of 30 or more it commanded in recent years.
"Once some of the short-term concerns about the rupee and the potential slowdown in the U.S. economy begin to subside, the focus will return to the strength of Infosys' business model. I expect INFY to be one of our big winners in the year ahead."
Each day, Steven Halpern's TheStockAdvisors.com features the latest investment commentary and favorite stocks of the nation's leading financial newsletter advisors.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
