3 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 83 points (0.6%) at 13,218 as of Monday, Dec. 17, 2012, 11:50 AM ET. The NYSE advances/declines ratio sits at 1,927 issues advancing vs. 999 declining with 148 unchanged.

The Computer Software & Services industry currently sits up 0.5% versus the S&P 500, which is up 0.8%. Top gainers within the industry include Compuware Corporation ( CPWR), up 13.9%, Oracle Corporation ( ORCL), up 1.1% and Accenture ( ACN), up 0.8%.

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

3. Infosys ( INFY) is one of the companies pushing the Computer Software & Services industry lower today. As of noon trading, Infosys is down $0.45 (-1.1%) to $41.23 on light volume Thus far, 773,419 shares of Infosys exchanged hands as compared to its average daily volume of 2.1 million shares. The stock has ranged in price between $41.18-$41.60 after having opened the day at $41.54 as compared to the previous trading day's close of $41.68.

Infosys Limited provides business consulting, technology, engineering, and outsourcing services worldwide. Infosys has a market cap of $23.9 billion and is part of the technology sector. The company has a P/E ratio of 13.9, below the S&P 500 P/E ratio of 17.7. Shares are down 18.7% year to date as of the close of trading on Friday. Currently there are 2 analysts that rate Infosys a buy, 2 analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Infosys 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 reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow. Get the full Infosys Ratings Report now.

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2. As of noon trading, Activision Blizzard ( ATVI) is down $0.25 (-2.2%) to $11.16 on light volume Thus far, 3.1 million shares of Activision Blizzard exchanged hands as compared to its average daily volume of 9.4 million shares. The stock has ranged in price between $11.04-$11.39 after having opened the day at $11.39 as compared to the previous trading day's close of $11.41.

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 $12.8 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 6.7% year to date as of the close of trading on Friday. Currently there are 15 analysts that rate Activision Blizzard a buy, no analysts rate it a sell, and 4 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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1. As of noon trading, Adobe Systems ( ADBE) is down $0.35 (-0.9%) to $37.21 on heavy volume Thus far, 4.0 million shares of Adobe Systems exchanged hands as compared to its average daily volume of 4.0 million shares. The stock has ranged in price between $36.90-$37.32 after having opened the day at $37.07 as compared to the previous trading day's close of $37.56.

Adobe Systems Incorporated operates as a diversified software company worldwide. It offers a line of software and services used by creative professionals, marketers, knowledge workers, application developers, enterprises, and consumers. Adobe Systems has a market cap of $17.6 billion and is part of the technology sector. The company has a P/E ratio of 15.1, below the S&P 500 P/E ratio of 17.7. Shares are up 25.7% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Adobe Systems a buy, 2 analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Adobe 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, reasonable valuation levels, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Adobe Systems Ratings Report now.

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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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