IHS Inc. (IHS): 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.

IHS ( IHS) 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, IHS fell $1.24 (-1.1%) to $110.24 on light volume. Throughout the day, 244,438 shares of IHS exchanged hands as compared to its average daily volume of 396,300 shares. The stock ranged in price between $110.05-$111.95 after having opened the day at $111.61 as compared to the previous trading day's close of $111.48. Other companies within the Computer Software & Services industry that declined today were: BOS Better Online Solutions ( BOSC), down 7.7%, China Mobile Games and Entertainment Group ( CMGE), down 7.4%, FalconStor Software ( FALC), down 5.8%, and Smith Micro Software ( SMSI), down 5.2%.
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IHS Inc. provides critical information, insights, and analytics. IHS has a market cap of $7.25 billion and is part of the technology sector. The company has a P/E ratio of 46.5, above the S&P 500 P/E ratio of 17.7. Shares are up 16.1% year to date as of the close of trading on Wednesday. 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 solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, China Information Technology ( CNIT), up 36.6%, Mitek Systems ( MITK), up 14.8%, NQ Mobile ( NQ), up 14.1%, and Rovi ( ROVI), up 10.1%, were all gainers within the computer software & services industry with Red Hat ( RHT) 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).

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