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

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 51 points (0.4%) at 13,835 as of Tuesday, Feb. 26, 2013, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,532 issues advancing vs. 1,325 declining with 146 unchanged.

The Computer Software & Services industry currently sits up 0.1% versus the S&P 500, which is unchanged. On the negative front, top decliners within the industry include Wipro ( WIT), down 1.4%, Sap AG ADR ( SAP), down 1.5% and Catamaran ( CTRX), down 1.3%.

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

3. Red Hat ( RHT) is one of the companies pushing the Computer Software & Services industry lower today. As of noon trading, Red Hat is down $0.81 (-1.6%) to $49.43 on average volume Thus far, 1.2 million shares of Red Hat exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $49.42-$50.62 after having opened the day at $50.55 as compared to the previous trading day's close of $50.24.

Red Hat, Inc. provides open source software solutions to enterprise customers worldwide. The company also offers enterprise-ready open source operating system platforms. Red Hat has a market cap of $9.9 billion and is part of the technology sector. The company has a P/E ratio of 69.2, above the S&P 500 P/E ratio of 17.7. Shares are down 3.2% year to date as of the close of trading on Monday. Currently there are 18 analysts that rate Red Hat a buy, 1 analyst rates it a sell, and 8 rate it a hold.

TheStreet Ratings rates Red Hat 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, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Red Hat Ratings Report now.

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2. As of noon trading, Activision Blizzard ( ATVI) is down $0.16 (-1.1%) to $14.17 on average volume Thus far, 5.4 million shares of Activision Blizzard exchanged hands as compared to its average daily volume of 9.7 million shares. The stock has ranged in price between $14.08-$14.41 after having opened the day at $14.32 as compared to the previous trading day's close of $14.33.

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 $16.1 billion and is part of the technology sector. The company has a P/E ratio of 14.4, below the S&P 500 P/E ratio of 17.7. Shares are up 36.6% year to date as of the close of trading on Monday. 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 stock price during the past year 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 Activision Blizzard Ratings Report now.

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1. As of noon trading, Citrix Systems ( CTXS) is down $0.67 (-0.9%) to $70.54 on average volume Thus far, 936,087 shares of Citrix Systems exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $70.48-$72.71 after having opened the day at $71.49 as compared to the previous trading day's close of $71.21.

Citrix Systems, Inc. designs, develops, and markets technology solutions to deliver IT services on-demand worldwide. Citrix Systems has a market cap of $13.6 billion and is part of the technology sector. The company has a P/E ratio of 39.2, above the S&P 500 P/E ratio of 17.7. Shares are up 11.1% year to date as of the close of trading on Monday. Currently there are 20 analysts that rate Citrix Systems a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Citrix Systems 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, increase in net income, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Citrix Systems 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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