3 Stocks Pushing The Computer Software & Services Industry Higher

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 18 points (-0.1%) at 13,964 as of Thursday, Feb. 14, 2013, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,305 issues advancing vs. 1,524 declining with 153 unchanged.

The Computer Software & Services industry currently sits up 0.1% versus the S&P 500, which is down 0.1%. On the negative front, top decliners within the industry include Wipro ( WIT), down 2.3%, and Infosys ( INFY), down 0.8%.

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

3. Nuance Communications ( NUAN) is one of the companies pushing the Computer Software & Services industry higher today. As of noon trading, Nuance Communications is up $0.60 (3.2%) to $19.11 on heavy volume Thus far, 4.1 million shares of Nuance Communications exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $18.45-$19.18 after having opened the day at $18.50 as compared to the previous trading day's close of $18.51.

Nuance Communications, Inc. provides voice and language solutions for businesses and consumers worldwide. Nuance Communications has a market cap of $6.0 billion and is part of the technology sector. The company has a P/E ratio of 34.4, above the S&P 500 P/E ratio of 17.7. Shares are down 15.3% year to date as of the close of trading on Wednesday. Currently there are 9 analysts that rate Nuance Communications a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Nuance Communications 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 a generally disappointing performance in the stock itself and unimpressive growth in net income. Get the full Nuance Communications Ratings Report now.

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2. As of noon trading, Activision Blizzard ( ATVI) is up $0.15 (1.1%) to $13.88 on heavy volume Thus far, 9.6 million shares of Activision Blizzard exchanged hands as compared to its average daily volume of 8.9 million shares. The stock has ranged in price between $13.64-$14.02 after having opened the day at $13.66 as compared to the previous trading day's close of $13.73.

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 $15.0 billion and is part of the technology sector. The company has a P/E ratio of 13.4, below the S&P 500 P/E ratio of 17.7. Shares are up 27.2% year to date as of the close of trading on Wednesday. Currently there are 17 analysts that rate Activision Blizzard a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Activision Blizzard 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, attractive valuation levels, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Activision Blizzard Ratings Report now.

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1. As of noon trading, Salesforce.com ( CRM) is up $2.45 (1.4%) to $174.75 on average volume Thus far, 889,068 shares of Salesforce.com exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $171.56-$175.46 after having opened the day at $172.29 as compared to the previous trading day's close of $172.30.

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 $25.2 billion and is part of the technology sector. Shares are up 2.5% year to date as of the close of trading on Wednesday. Currently there are 28 analysts that rate Salesforce.com a buy, 2 analysts rate it a sell, and 3 rate 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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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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