Autodesk Inc. (ADSK): Today's Featured Computer Software & Services 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.

Autodesk ( ADSK) pushed the Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole closed the day up 0.5%. By the end of trading, Autodesk fell 59 cents (-1.6%) to $36.20 on heavy volume. Throughout the day, 9.9 million shares of Autodesk exchanged hands as compared to its average daily volume of 2.5 million shares. The stock ranged in price between $35.99-$36.98 after having opened the day at $36.62 as compared to the previous trading day's close of $36.79. Other companies within the Computer Software & Services industry that declined today were: Wireless Ronin Technologies ( RNIN), down 14.6%, China Mobile Games and Entertainment Group ( CMGE), down 13.4%, China Digital TV ( STV), down 11.9%, and DynaVox ( DVOX), down 10.4%.
  • 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.

Autodesk, Inc. provides design software and services to customers worldwide. Autodesk has a market cap of $8.23 billion and is part of the technology sector. The company has a P/E ratio of 18.9, above the S&P 500 P/E ratio of 17.7. Shares are up 3.6% year to date as of the close of trading on Tuesday. Currently there are six analysts that rate Autodesk a buy, one analyst rates it a sell, and nine rate it a hold.

TheStreet Ratings rates Autodesk as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Guidewire Software ( GWRE), up 16.6%, Cimatron ( CIMT), up 10.3%, Ebix ( EBIX), up 8.2%, and Sourcefire ( FIRE), up 7.3%, were all gainers within the computer software & services industry with Oracle Corporation ( ORCL) being today's featured computer software & services industry leader.

For investors not wanting singular stock exposure, 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).

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

More from Markets

Stocks Trade Mixed Amid Progress on U.S.-China Trade; Dow Turns Lower

Stocks Trade Mixed Amid Progress on U.S.-China Trade; Dow Turns Lower

Micron Spikes After $10 Billion Buyback Plan Caps Bullish Q3 Earnings Forecast

Micron Spikes After $10 Billion Buyback Plan Caps Bullish Q3 Earnings Forecast

J.C. Penney Shares Fall as CEO Marvin Ellison Resigns to Head Lowe's

J.C. Penney Shares Fall as CEO Marvin Ellison Resigns to Head Lowe's

U.S. Crude Oil Hits Fresh 3-Year Highs as Gas Prices March to $3 a Gallon

U.S. Crude Oil Hits Fresh 3-Year Highs as Gas Prices March to $3 a Gallon

Oil Prices, China Tariffs, Micron and Kohl's - 5 Things You Must Know

Oil Prices, China Tariffs, Micron and Kohl's - 5 Things You Must Know