5 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

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 15 points (0.1%) at 12,980 as of Tuesday, Dec. 4, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,319 issues advancing vs. 1,553 declining with 162 unchanged.

The Computer Software & Services industry currently sits down 0.6% versus the S&P 500, which is down 0.1%. On the negative front, top decliners within the industry include Syntel ( SYNT), down 7.3%, Computer Sciences Corporation ( CSC), down 2.3%, Red Hat ( RHT), down 1.3%, Cerner Corporation ( CERN), down 1.1% and Thomson Reuters Corporation ( TRI), down 0.7%.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry lower today:

5. Activision Blizzard ( ATVI) is one of the companies pushing the Computer Software & Services industry lower today. As of noon trading, Activision Blizzard is down $0.09 (-0.8%) to $11.22 on light volume Thus far, 2.5 million shares of Activision Blizzard exchanged hands as compared to its average daily volume of 9.3 million shares. The stock has ranged in price between $11.20-$11.37 after having opened the day at $11.34 as compared to the previous trading day's close of $11.31.

Activision Blizzard, Inc. publishes online, personal computer (PC), console, handheld, and mobile interactive entertainment worldwide. It develops and publishes PC-based computer games and maintains its proprietary online-game related service, Battle.net. Activision Blizzard has a market cap of $12.7 billion and is part of the technology sector. The company has a P/E ratio of 14.7, below the S&P 500 P/E ratio of 17.7. Shares are down 7.0% year to date as of the close of trading on Monday. Currently there are 15 analysts that rate Activision Blizzard a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Activision Blizzard 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 impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year. Get the full Activision Blizzard Ratings Report now.

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4. As of noon trading, Rackspace Hosting ( RAX) is down $0.76 (-1.1%) to $66.60 on light volume Thus far, 555,656 shares of Rackspace Hosting exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $66.20-$67.30 after having opened the day at $67.13 as compared to the previous trading day's close of $67.36.

Rackspace Hosting, Inc. provides cloud computing services, managing Web-based IT systems for small and medium-sized businesses, and large enterprises worldwide. Rackspace Hosting has a market cap of $9.5 billion and is part of the technology sector. The company has a P/E ratio of 96.0, above the S&P 500 P/E ratio of 17.7. Shares are up 56.6% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate Rackspace Hosting a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Rackspace Hosting as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Rackspace Hosting Ratings Report now.

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3. As of noon trading, VMWare ( VMW) is down $0.76 (-0.8%) to $91.02 on light volume Thus far, 368,726 shares of VMWare exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $90.48-$91.64 after having opened the day at $90.98 as compared to the previous trading day's close of $91.78.

VMware, Inc. provides virtualization and virtualization-based cloud infrastructure solutions in the United States and internationally. VMWare has a market cap of $11.6 billion and is part of the technology sector. The company has a P/E ratio of 53.2, above the S&P 500 P/E ratio of 17.7. Shares are up 10.3% year to date as of the close of trading on Monday. Currently there are 19 analysts that rate VMWare a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates VMWare 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 expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full VMWare Ratings Report now.

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2. As of noon trading, Salesforce.com ( CRM) is down $0.95 (-0.6%) to $156.10 on light volume Thus far, 424,983 shares of Salesforce.com exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $155.11-$157.50 after having opened the day at $157.05 as compared to the previous trading day's close of $157.05.

salesforce.com, inc provides cloud computing and social enterprise solutions to various businesses and industries worldwide. The company delivers customer relationship management applications through Internet or cloud. Salesforce.com has a market cap of $22.4 billion and is part of the technology sector. Shares are up 54.8% year to date as of the close of trading on Monday. Currently there are 28 analysts that rate Salesforce.com a buy, 2 analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Salesforce.com as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow. Get the full Salesforce.com Ratings Report now.

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1. As of noon trading, Oracle Corporation ( ORCL) is down $0.24 (-0.7%) to $32.07 on light volume Thus far, 7.3 million shares of Oracle Corporation exchanged hands as compared to its average daily volume of 22.7 million shares. The stock has ranged in price between $32.01-$32.38 after having opened the day at $32.22 as compared to the previous trading day's close of $32.31.

Oracle Corporation develops, manufactures, markets, hosts, and supports database and middleware software, applications software, and hardware systems. Oracle Corporation has a market cap of $155.1 billion and is part of the technology sector. The company has a P/E ratio of 16.0, below the S&P 500 P/E ratio of 17.7. Shares are up 25.4% year to date as of the close of trading on Monday. Currently there are 20 analysts that rate Oracle Corporation a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Oracle Corporation as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, notable return on equity, reasonable valuation levels and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Oracle Corporation Ratings Report now.

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If you are interested in one of these 4 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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