3 Stocks Pushing The Computer Software & Services Industry Higher

TheStreet Ratings group would like to highlight 3 stocks pushing the computer software & services industry higher today, Nov. 15, 2012.

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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 46 points (-0.4%) at 12,524 as of Thursday, Nov. 15, 2012, 12:05 PM ET. The NYSE advances/declines ratio sits at 887 issues advancing vs. 2,072 declining with 104 unchanged.

The Computer Software & Services industry currently sits down 0.2% versus the S&P 500, which is down 0.5%. Top gainers within the industry include Catamaran ( CTRX), up 1.2%, Cognizant Technology Solutions Corporation ( CTSH), up 0.8% and Automatic Data Processing ( ADP), up 0.6%. On the negative front, top decliners within the industry include Velti ( VELT), down 32.3%, F5 Networks ( FFIV), down 1.5%, Red Hat ( RHT), down 1.0%, Wipro ( WIT), down 1.0% and Sap AG ADR ( SAP), down 0.6%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry higher today:

3. Thomson Reuters Corporation ( TRI) is one of the companies pushing the Computer Software & Services industry higher today. As of noon trading, Thomson Reuters Corporation is up $0.14 (0.5%) to $27.47 on light volume Thus far, 304,732 shares of Thomson Reuters Corporation exchanged hands as compared to its average daily volume of 852,600 shares. The stock has ranged in price between $27.34-$27.58 after having opened the day at $27.37 as compared to the previous trading day's close of $27.33.

Thomson Reuters Corporation provides intelligent information for businesses and professionals worldwide. Thomson Reuters Corporation has a market cap of $22.9 billion and is part of the technology sector. The company has a P/E ratio of -26.4, below the S&P 500 P/E ratio of 17.7. Shares are up 4.1% year to date as of the close of trading on Wednesday. Currently there are 4 analysts that rate Thomson Reuters Corporation a buy, 1 analyst rates it a sell, and 11 rate it a hold.

TheStreet Ratings rates Thomson Reuters Corporation as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself. Get the full Thomson Reuters Corporation Ratings Report now.

2. As of noon trading, FactSet Research Systems ( FDS) is up $2.44 (2.8%) to $90.23 on average volume Thus far, 260,281 shares of FactSet Research Systems exchanged hands as compared to its average daily volume of 376,200 shares. The stock has ranged in price between $87.09-$90.47 after having opened the day at $87.59 as compared to the previous trading day's close of $87.79.

FactSet Research Systems Inc. provides financial and economic information to investment community worldwide. FactSet Research Systems has a market cap of $3.9 billion and is part of the technology sector. The company has a P/E ratio of 21.5, above the S&P 500 P/E ratio of 17.7. Shares are up 1.5% year to date as of the close of trading on Wednesday. Currently there is 1 analyst that rates FactSet Research Systems a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates FactSet Research Systems 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, notable return on equity, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full FactSet Research Systems Ratings Report now.

1. As of noon trading, Nuance Communications ( NUAN) is up $0.31 (1.5%) to $20.47 on average volume Thus far, 1.5 million shares of Nuance Communications exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $20.17-$20.56 after having opened the day at $20.25 as compared to the previous trading day's close of $20.16.

Nuance Communications, Inc. provides voice and language solutions for businesses and consumers worldwide. Nuance Communications has a market cap of $6.4 billion and is part of the technology sector. The company has a P/E ratio of 79.7, above the S&P 500 P/E ratio of 17.7. Shares are down 17.7% year to date as of the close of trading on Wednesday. Currently there are 13 analysts that rate Nuance Communications a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Nuance Communications as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Nuance Communications Ratings Report now.

If you are interested in one of these 3 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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