4 Stocks Pushing The Computer Software & Services Industry Lower

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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 146 points (1.1%) at 13,259 as of Tuesday, Nov. 6, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 2,070 issues advancing vs. 801 declining with 135 unchanged.

The Computer Software & Services industry currently sits up 0.1% versus the S&P 500, which is up 0.9%. A company within the industry that fell today was Wipro ( WIT), up 1.2%. Top gainers within the industry include Computer Sciences Corporation ( CSC), up 15.7%, Salesforce.com ( CRM), up 2.0%, Cognizant Technology Solutions Corporation ( CTSH), up 1.3% and Oracle Corporation ( ORCL), up 1.1%.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry lower today:

4. ServiceSource International ( SREV) is one of the companies pushing the Computer Software & Services industry lower today. As of noon trading, ServiceSource International is down $3.04 (-37.1%) to $5.16 on heavy volume Thus far, 7.1 million shares of ServiceSource International exchanged hands as compared to its average daily volume of 780,300 shares. The stock has ranged in price between $5.06-$5.60 after having opened the day at $5.35 as compared to the previous trading day's close of $8.20.

ServiceSource International, Inc. manages the service contract renewals process of maintenance, support and subscription agreements for technology and technology-enabled healthcare, and life sciences companies. ServiceSource International has a market cap of $656.9 million and is part of the technology sector. The company has a P/E ratio of -15.9, below the S&P 500 P/E ratio of 17.7. Shares are down 44.1% year to date as of the close of trading on Monday. Currently there are 8 analysts that rate ServiceSource International a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates ServiceSource International as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. Get the full ServiceSource International Ratings Report now.

3. As of noon trading, BroadSoft ( BSFT) is down $5.79 (-15.7%) to $31.00 on heavy volume Thus far, 2.6 million shares of BroadSoft exchanged hands as compared to its average daily volume of 710,700 shares. The stock has ranged in price between $30.41-$33.15 after having opened the day at $31.78 as compared to the previous trading day's close of $36.79.

BroadSoft, Inc. provides software and services that enable mobile, fixed-line, and cable service providers to deliver unified communications and other voice and multimedia services over Internet protocol (IP) based networks. BroadSoft has a market cap of $994.9 million and is part of the technology sector. The company has a P/E ratio of 61.1, above the S&P 500 P/E ratio of 17.7. Shares are up 19.4% year to date as of the close of trading on Monday. Currently there are 7 analysts that rate BroadSoft a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates BroadSoft as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and relatively poor performance when compared with the S&P 500 during the past year. Get the full BroadSoft Ratings Report now.

2. As of noon trading, MSCI ( MSCI) is down $1.33 (-4.9%) to $25.92 on heavy volume Thus far, 1.7 million shares of MSCI exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $25.45-$26.48 after having opened the day at $25.95 as compared to the previous trading day's close of $27.25.

MSCI Inc. provides a suite of performance, risk management, and corporate governance products and services worldwide. MSCI has a market cap of $3.3 billion and is part of the technology sector. The company has a P/E ratio of 18.8, above the S&P 500 P/E ratio of 17.7. Shares are down 17.2% year to date as of the close of trading on Monday. Currently there is 1 analyst that rates MSCI a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates MSCI as a hold. 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and unimpressive growth in net income. Get the full MSCI Ratings Report now.

1. As of noon trading, Catamaran ( CTRX) is down $1.15 (-2.3%) to $48.50 on heavy volume Thus far, 1.2 million shares of Catamaran exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $47.65-$49.18 after having opened the day at $48.20 as compared to the previous trading day's close of $49.65.

Catamaran Corporation 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 $10.2 billion and is part of the technology sector. The company has a P/E ratio of 72.0, above the S&P 500 P/E ratio of 17.7. Shares are up 75.8% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate Catamaran a buy, no analysts rate it a sell, and 6 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 and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Catamaran Ratings Report now.

If you are interested in one of these 5 stocks, 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).

A reminder about TheStreet Ratings group: 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.
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