Infosys to stay on top: Why IT company's stock outperforms its peers

Robust deal pipeline, margin gain hopes have helped it to bridge the valuation gap with TCS

Infosys has been the best-performing front line information technology (IT) stock over the past year, gaining over 10 per cent. All its top-tier peers have, in fact, generated negative returns over the same period. 

The IT services firm’s outperformance is likely to continue, given the order wins, margin focus, and lower exposure to the slowing European financial services segment. Analysts expect the company — which had increased its growth guidance from 7.5-9.5 per cent to 8.5-10 per cent for 2019-20 (FY20) — to beat the upper-end of the growth target.  

“The company has the best near-term visibility among the top-tier IT companies.