We recently published a list of 12 Most Oversold Large Cap Stocks to Invest in Now. In this article, we are going to take a look at where Infosys Limited (NYSE:INFY) stands against other most oversold large cap stocks to invest in now.
Impact of Tariff Uncertainty on Wall Street and the Future of US Stocks
Wall Street is being impacted by the uncertainty surrounding the tariff news. The broader has dropped a lot since Trump took office on January 20, and investors are mostly worried about tariffs because they think they could hurt economic growth and cause inflation. Investors think trade policies can reduce consumer confidence and restrict businesses’ ability to invest capital, while Trump believes tariffs can boost national revenue, promote broad-based growth, and be used as a negotiation weapon with other nations.
According to Franklin Templeton, the Magnificent Seven’s supremacy in AI has allowed US stocks to generate significant returns over the last few years, with the broader market frequently hitting all-time highs. The outlook for the market as a whole is favorable, notwithstanding high valuations. Sales growth has been accelerating, innovation and investment are still happening at a rapid pace, and this year’s earnings are predicted to increase by double digits. Additionally, the administration of the US economy is more business-friendly. However, there are concerns, primarily associated with US trade policy and the anticipated effects of tariffs on important industries, such as technology.
Franklin Templeton thinks that despite these risks, investor confidence in US stocks should continue to be high. The new administration’s policy reforms are anticipated to finally produce long-term benefits for the larger US economy, notwithstanding the possibility of increased dangers.
Franklin Templeton also stated that although the Mag 7 stocks are positioned for long-term success, market leadership is anticipated to expand as and when innovation accelerates. According to the investment firm, active management is crucial. The transition from AI platforms to infrastructure is still in progress. Consequently, it is anticipated that the success of investments will depend on the ability to select the appropriate companies at the right time—those that have the technology, strategy, and flexibility to continue and sustain long-term growth.
Thanks to innovation and investment, US stocks—mostly large-cap stocks—have been doing well. Notably, the Dow index has increased by more than 4.5% in the last six months. The investment business sees expanding chances beyond such market leaders, even though the Mag 7 stocks still sustain the market momentum. The competitive landscape is still dynamic and has been generating new development sectors as a result of the ongoing AI-driven cycle.
Our Methodology
For our methodology, we screened for stocks with a market capitalization exceeding $10 billion and a relative strength index (RSI) below 40. We then ranked these stocks based on the lowest RSI as of March 23, 2025. An RSI below 40 suggests that the stock is oversold.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A programmer typing on a laptop, highlighting the cutting edge software engineering solutions provided by the company.
Infosys Limited (NYSE:INFY)
Relative Strength Index: 28.67
Infosys Limited (NYSE:INFY) is a global leader in digital services. It is based in Bengaluru, India, and serves major industries like aerospace, healthcare, and finance. The company is known for its focus on innovation and specializes in AI, cloud computing, and data analytics. Its latest AI platform, Topaz, with 150+ pre-trained models, helps modernize systems, improve customer experiences, and boost cybersecurity.
Infosys Limited (NYSE:INFY)’s Q3 2025 earnings call highlights strong performance and promising future growth. The company reported a 1.7% quarter-on-quarter and 6.1% year-on-year revenue growth in constant currency, which was driven by strong results in Europe, India, and the manufacturing sector. This growth reflects the company’s consistent execution and momentum. The business also secured $2.5 billion in large deals, with 63% of them being new contracts.
The company’s profitability remained robust, with the operating margin improving to 21.3%, up 20 basis points sequentially. This expansion was driven by factors like currency movements, project efficiencies, and lower costs. Infosys Limited (NYSE:INFY) achieved an 11.4% year-on-year increase in EPS, reaching INR 16.43. Additionally, the corporation generated a record-high free cash flow of $1.26 billion, which reflected a strong focus on cash conversion, with free cash flow as a percentage of net profit hitting 136% for the nine months.
The company’s headcount grew by over 5,000 employees, bringing the total to more than 323,000, with a reduced attrition rate of 13.7%. Their revenue growth was driven by increased discretionary spending in financial services and retail sectors, particularly in the U.S., and strong performance in Europe’s financial services. The company also reported significant improvements in free cash flow, up 51% from the previous quarter and 90% from the same period last year.
Looking ahead, Infosys Limited (NYSE:INFY) revised its revenue growth guidance to 4.5% to 5% in constant currency, reflecting confidence in its ongoing growth and strategic partnerships. The company continues to expand its market reach and strengthen its leadership in areas like sustainability and corporate governance.
Overall, INFY ranks 9th on our list of most oversold large cap stocks to invest in now. While we acknowledge the potential of INFY, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than INFY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
