3 Stocks Pushing The Computer Software & Services Industry Lower

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

The Dow Jones Industrial Average (^DJI) steady at 13,953 as of Wednesday, Jan. 30, 2013, 11:50 AM ET. The NYSE advances/declines ratio sits at 1,129 issues advancing vs. 1,699 declining with 163 unchanged.

The Computer Software & Services industry currently sits down 0.1% versus the S&P 500, which is down 0.0%. On the negative front, top decliners within the industry include Citrix Systems (CTXS), down 1.7%, and Rackspace Hosting (RAX), down 0.9%. Top gainers within the industry include Manhattan Associates (MANH), up 14.6%, VMWare (VMW), up 0.8%, Xerox Corporation (XRX), up 0.7%, Wipro (WIT), up 1.0% and Sap AG ADR (SAP), up 0.7%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. Cerner Corporation (CERN) is one of the companies pushing the Computer Software & Services industry lower today. As of noon trading, Cerner Corporation is down $0.54 (-0.6%) to $83.84 on light volume Thus far, 199,418 shares of Cerner Corporation exchanged hands as compared to its average daily volume of 853,300 shares. The stock has ranged in price between $83.28-$84.59 after having opened the day at $84.50 as compared to the previous trading day's close of $84.38.

Cerner Corporation designs, develops, markets, installs, hosts, and supports healthcare information technology, healthcare devices, and content solutions for healthcare organizations and consumers worldwide. Cerner Corporation has a market cap of $14.3 billion and is part of the technology sector. The company has a P/E ratio of 38.7, above the S&P 500 P/E ratio of 17.7. Shares are up 7.3% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Cerner Corporation a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Cerner Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Cerner Corporation Ratings Report now.

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2. As of noon trading, Automatic Data Processing (ADP) is down $0.31 (-0.5%) to $59.96 on light volume Thus far, 605,600 shares of Automatic Data Processing exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $59.64-$60.25 after having opened the day at $60.16 as compared to the previous trading day's close of $60.27.

Automatic Data Processing, Inc. and its subsidiaries provide business outsourcing solutions. The company operates in three segments: Employer Services, Professional Employer Organization (PEO) Services, and Dealer Services. Automatic Data Processing has a market cap of $29.0 billion and is part of the technology sector. The company has a P/E ratio of 21.1, above the S&P 500 P/E ratio of 17.7. Shares are up 4.8% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Automatic Data Processing a buy, 2 analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Automatic Data Processing as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, increase in net income, growth in earnings per share and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Automatic Data Processing Ratings Report now.

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1. As of noon trading, Adobe Systems (ADBE) is down $0.31 (-0.8%) to $38.21 on light volume Thus far, 1.0 million shares of Adobe Systems exchanged hands as compared to its average daily volume of 4.1 million shares. The stock has ranged in price between $38.00-$38.51 after having opened the day at $38.50 as compared to the previous trading day's close of $38.52.

Adobe Systems Incorporated operates as a diversified software company worldwide. It offers a line of software and services used by creative professionals, marketers, knowledge workers, application developers, enterprises, and consumers. Adobe Systems has a market cap of $19.1 billion and is part of the technology sector. The company has a P/E ratio of 23.0, above the S&P 500 P/E ratio of 17.7. Shares are up 1.5% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Adobe Systems a buy, 1 analyst rates it a sell, and 12 rate it a hold.

TheStreet Ratings rates Adobe Systems as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Adobe Systems Ratings Report now.

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If you are interested in one of these 5 stocks, ETFs may be of interest. Investors who are bullish on the computer software & services industry could consider iShares S&P NA Tech Software Idx (IGV) while those bearish on the computer software & services industry could consider ProShares Ultra Short Technology (REW).

A reminder about TheStreet Ratings group: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

 

For more information on Adobe Systems Inc click any of the following:

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