Automatic Data Processing

(

ADP

) pushed the Computer Software & Services industry higher today making it today's featured computer software & services winner. The industry as a whole closed the day down 0.7%. By the end of trading, Automatic Data Processing rose 31 cents (0.6%) to $53.15 on average volume. Throughout the day, 2.8 million shares of Automatic Data Processing exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in a price between $52.70-$53.36 after having opened the day at $53.01 as compared to the previous trading day's close of $52.84. Other companies within the Computer Software & Services industry that increased today were:

Vringo

(

VRNG

), up 24.6%,

Chyron Corporation

(

CHYR

), up 14.3%,

Netsol Technologies

(

NTWK

), up 7.8%, and

Wizzard Software Corporation

(

WZE

), up 7.7%.

Automatic Data Processing, Inc. provides 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 $25.9 billion and is part of the

technology

sector. The company has a P/E ratio of 19.1, equal to the average computer software & services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are down 2.2% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Automatic Data Processing a buy, two analysts rate it a sell, and 11 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, growth in earnings per share, good cash flow from operations, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front,

Recon Technology

(

RCON

), down 11.3%,

Helios & Matheson Information Technology In

(

HMNY

), down 8.3%,

NCI

(

NCIT

), down 8%, and

F5 Networks

(

FFIV

), down 7.9%, were all losers within the computer software & services industry with

Salesforce.com

(

CRM

) being today's computer software & services industry loser.

For investors not wanting singular stock exposure, 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

).

null