3 Stocks Pushing The Technology Sector 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

All three major indices are trading up today with the Dow Jones Industrial Average (^DJI) trading up 64 points (0.5%) at 13,945 as of Friday, Feb. 22, 2013, 12:05 PM ET. The NYSE advances/declines ratio sits at 1,966 issues advancing vs. 866 declining with 154 unchanged.

The Technology sector currently sits up 0.8% versus the S&P 500, which is up 0.4%. On the negative front, top decliners within the sector include Equinix (EQIX), down 3.1%, and Nippon Telegraph & Telephone (NTT), down 1.6%. Top gainers within the sector include Aruba Networks (ARUN), up 20.3%, Texas Instruments (TXN), up 4.6%, Infosys (INFY), up 4.3%, Wipro (WIT), up 3.5% and Tim Holding Company (TSU), up 3.4%.

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

3. Rackspace Hosting (RAX) is one of the companies pushing the Technology sector lower today. As of noon trading, Rackspace Hosting is down $2.46 (-4.4%) to $52.87 on heavy volume Thus far, 3.2 million shares of Rackspace Hosting exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $50.75-$53.55 after having opened the day at $53.20 as compared to the previous trading day's close of $55.33.

Rackspace Hosting, Inc. provides cloud computing services, managing Web-based IT systems for small and medium-sized businesses, and large enterprises worldwide. Rackspace Hosting has a market cap of $7.5 billion and is part of the computer software & services industry. The company has a P/E ratio of 73.3, above the S&P 500 P/E ratio of 17.7. Shares are down 26.0% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Rackspace Hosting a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Rackspace Hosting as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Rackspace Hosting Ratings Report now.

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