Catamaran Corp (CTRX): Today's Featured Computer Software & Services Loser

Catamaran ( CTRX) pushed the Computer Software & Services industry lower today making it today's featured Computer Software & Services loser. The industry as a whole closed the day down 0.7%. By the end of trading, Catamaran fell $1.97 (-2.1%) to $91.09 on light volume. Throughout the day, 1.1 million shares of Catamaran exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in price between $90.49-$93.98 after having opened the day at $92.51 as compared to the previous trading day's close of $93.06. Other company's within the Computer Software & Services industry that declined today were: DTS ( DTSI), down 25.1%, 21Vianet Group ( VNET), down 16.3%, Ninetowns Technology Group Company ( NINE), down 7.9%, and Boingo Wireless ( WIFI), down 7.7%.

SXC Health Solutions Corp. provides pharmacy benefit management (PBM) services and healthcare information technology solutions to the healthcare benefits management industry in North America. Catamaran has a market cap of $6.54 billion and is part of the technology sector. The company has a P/E ratio of 59.7, 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 up 68% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Catamaran a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Catamaran 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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, Cimatron ( CIMT), up 6.9%, Guidewire Software ( GWRE), up 5.5%, Authentidate Holding Corporation ( ADAT), up 5.2%, and FalconStor Software ( FALC), up 4.9%, were all gainers within the computer software & services industry with Oracle Corporation ( ORCL) being today's featured computer software & services industry winner.

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).
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