With rapid digital transformation, the rising adoption of hybrid working models, and increasing dependence on advanced technologies, the demand for information technology services is expected to rise. Prominent companies in this space, Infosys (NYSE:INFY) and Affirm (AFRM), should benefit from the industry tailwinds. But which of these two stocks is a better buy now? Read more to find out.Headquartered in Bengaluru, India, Infosys Limited (INFY) provides international consulting, technology, outsourcing, and next-generation digital services. It delivers application development and management, independent validation, product engineering and management, infrastructure management, enterprise application management, and support and integration services. In comparison, Affirm Holdings, Inc. (AFRM) in San Francisco operates a digital and mobile-first commerce platform in the United States and Canada. The company's platform includes point-of-sale payment solutions for consumers, merchant commerce solutions, and a consumer-focused app.
The information technology services market is expected to grow exponentially due to increasing demand from almost every industry. Moreover, because governments worldwide are reinstating lockdown and travel bans to limit the spread of the highly transmissible COVID-19 omicron variant, the demand for information technology services is expected to rise further in the near term. According to Gartner , Inc. (NYSE:IT) report, worldwide IT services spending is expected to reach $1.2 trillion in 2021, representing a 9.8% increase from 2020. Therefore, both INFY and AFRM should benefit.
Over the past nine months, AFRM has gained 24.3% in price, while INFY has returned 23.9%. Also, AFRM’s 69.6% price gains over the past six months are significantly higher than INFY’s 19.5% returns. Furthermore, AFRM is the clear winner with 15.3% gains versus INFY’s negative returns in terms of their past three months’ performance.