IHS Inc. (IHS): Today's Featured Technology Laggard

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 Technology sector lower today making it today's featured Technology laggard. The sector as a whole was unchanged today. By the end of trading, IHS fell $1.14 (-1.1%) to $102.81 on light volume. Throughout the day, 181,019 shares of IHS exchanged hands as compared to its average daily volume of 452,900 shares. The stock ranged in price between $102.49-$104.02 after having opened the day at $103.57 as compared to the previous trading day's close of $103.95. Other companies within the Technology sector that declined today were: Powerwave Technologies ( PWAV), down 74.2%, Authentidate Holding Corporation ( ADAT), down 15.3%, 3D Systems Corporation ( DDD), down 13.9%, and Perceptron ( PRCP), down 11.1%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

IHS Inc. provides critical information and insight products and services. IHS has a market cap of $6.77 billion and is part of the computer software & services industry. The company has a P/E ratio of 43.5, above the S&P 500 P/E ratio of 17.7. Shares are up 7.4% year to date as of the close of trading on Friday. Currently there are six analysts that rate IHS a buy, no analysts rate it a sell, and four 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, growth in earnings per share, compelling growth in net income, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Advanced Photonix ( API), up 20%, Glu Mobile ( GLUU), up 15.2%, Zynga Inc Class A ( ZNGA), up 14.1%, and Hauppauge Digital ( HAUP), up 14%, were all gainers within the technology sector with Groupon ( GRPN) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

IHS Stock Closed Up on Q2 Earnings Beat

Week Ahead: Markets Will Likely Still Feel the Burn From ‘Brexit’

Wall Street's Winning Streak Ends as Terrorism, Crude Press Stocks

Weak On High Volume: IHS (IHS)

IHS Stock Skyrocketed Today on Markit Merger