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

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 lower today making it today's featured Computer Software & Services laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Autodesk fell 60 cents (-1.8%) to $33.18 on average volume. Throughout the day, 4.5 million shares of Autodesk exchanged hands as compared to its average daily volume of 3.4 million shares. The stock ranged in price between $32.69-$33.62 after having opened the day at $33.25 as compared to the previous trading day's close of $33.78. Other companies within the Computer Software & Services industry that declined today were: Informatica Corporation ( INFA), down 22.6%, China Mobile Games and Entertainment Group ( CMGE), down 16%, Qlik Technologies ( QLIK), down 6.2%, and Authentidate Holding Corporation ( ADAT), down 5.8%.
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Autodesk, Inc. provides design software and services to customers worldwide. Autodesk has a market cap of $7.58 billion and is part of the technology sector. The company has a P/E ratio of 18.9, below the average computer software & services industry P/E ratio of 26.7 and above the S&P 500 P/E ratio of 17.7. Shares are up 10.2% year to date as of the close of trading on Wednesday. Currently there are six analysts that rate Autodesk a buy, one analyst rates it a sell, and 10 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, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, CollabRx ( CLRX), up 38%, Vringo ( VRNG), up 22.1%, e-Future Information Technology ( EFUT), up 21.3%, and Kingtone Wirelessinfo Solution ( KONE), up 19.1%, were all gainers within the computer software & services industry with Activision Blizzard ( ATVI) being today's featured computer software & services industry leader.

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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