IHS Inc. (IHS): 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.

IHS ( IHS) 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 1.5%. By the end of trading, IHS rose $2.50 (2.9%) to $89.64 on heavy volume. Throughout the day, 1.2 million shares of IHS exchanged hands as compared to its average daily volume of 471,100 shares. The stock ranged in a price between $86.94-$89.94 after having opened the day at $87.38 as compared to the previous trading day's close of $87.14. Other companies within the Computer Software & Services industry that increased today were: TSR ( TSRI), up 13.9%, Kingtone Wirelessinfo Solution ( KONE), up 11.1%, Helios & Matheson Information Technology In ( HMNY), up 9.3%, and Mantech International ( MANT), up 8.9%.
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IHS Inc. provides critical information and insight products and services. IHS has a market cap of $5.56 billion and is part of the technology sector. The company has a P/E ratio of 41.6, above the S&P 500 P/E ratio of 17.7. Shares are up 1.1% year to date as of the close of trading on Thursday. Currently there are seven analysts that rate IHS a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates IHS as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Active Network ( ACTV), down 41.7%, Glu Mobile ( GLUU), down 21.5%, Eloqua ( ELOQ), down 16.1%, and WebMD Health Corporation ( WBMD), down 13.5%, were all laggards within the computer software & services industry with Cognizant Technology Solutions Corporation ( CTSH) 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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