Autodesk Inc. (ADSK): Today's Featured Computer Software & Services Winner

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.

Autodesk ( ADSK) 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 up 0.2%. By the end of trading, Autodesk rose 72 cents (2.4%) to $31.23 on heavy volume. Throughout the day, 8.3 million shares of Autodesk exchanged hands as compared to its average daily volume of 2.9 million shares. The stock ranged in a price between $30.22-$31.87 after having opened the day at $30.51 as compared to the previous trading day's close of $30.51. Other companies within the Computer Software & Services industry that increased today were: Optibase ( OBAS), up 10.9%, Recon Technology ( RCON), up 9.2%, Sonic Foundry ( SOFO), up 8.7%, and Sapiens International Corporation ( SPNS), up 8.3%.

Autodesk, Inc. provides design software and services to customers worldwide. Autodesk has a market cap of $6.92 billion and is part of the technology sector. The company has a P/E ratio of 16.3, below the average computer software & services industry P/E ratio of 24.1 and below the S&P 500 P/E ratio of 17.7. Shares are up 0.6% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Autodesk a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates Autodesk 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 expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Tangoe ( TNGO), down 16.9%, Helios & Matheson Information Technology In ( HMNY), down 10.7%, Vringo ( VRNG), down 6.2%, and China Information Technology ( CNIT), down 5.1%, were all laggards within the computer software & services industry with VMWare ( VMW) being today's computer software & services industry laggard.

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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