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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 50 points (0.3%) at 14,379 as of Friday, March 8, 2013, 12:05 PM ET. The NYSE advances/declines ratio sits at 1,811 issues advancing vs. 1,063 declining with 140 unchanged.

The Computer Software & Services industry currently sits up 0.3% versus the S&P 500, which is up 0.3%. On the negative front, top decliners within the industry include Activision Blizzard ( ATVI), down 1.3%, and Sap AG ADR ( SAP), down 0.6%.

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

3. Thomson Reuters Corporation ( TRI) is one of the companies pushing the Computer Software & Services industry lower today. As of noon trading, Thomson Reuters Corporation is down $0.17 (-0.6%) to $30.57 on light volume Thus far, 245,422 shares of Thomson Reuters Corporation exchanged hands as compared to its average daily volume of 890,600 shares. The stock has ranged in price between $30.51-$31.08 after having opened the day at $30.95 as compared to the previous trading day's close of $30.74.

Thomson Reuters Corporation provides intelligent information for businesses and professionals worldwide. Thomson Reuters Corporation has a market cap of $25.2 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 5.8% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate Thomson Reuters Corporation a buy, 2 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Thomson Reuters Corporation as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Get the full Thomson Reuters Corporation Ratings Report now.

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2. As of noon trading, Catamaran ( CTRX) is down $0.43 (-0.8%) to $55.78 on average volume Thus far, 783,680 shares of Catamaran exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $55.45-$56.68 after having opened the day at $56.68 as compared to the previous trading day's close of $56.21.

Catamaran Corporation provides pharmacy benefit management (PBM) services and healthcare information technology solutions to the healthcare benefits management industry in North America. Catamaran has a market cap of $11.6 billion and is part of the technology sector. The company has a P/E ratio of 80.4, above the S&P 500 P/E ratio of 17.7. Shares are up 19.4% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate Catamaran a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Catamaran 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, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Catamaran Ratings Report now.

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1. As of noon trading, Rackspace Hosting ( RAX) is down $1.31 (-2.3%) to $55.98 on light volume Thus far, 727,667 shares of Rackspace Hosting exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $55.90-$57.69 after having opened the day at $57.52 as compared to the previous trading day's close of $57.29.

Rackspace Hosting, Inc. provides cloud computing services, managing Web-based IT systems for small and medium-sized businesses, and large enterprises worldwide. Rackspace Hosting has a market cap of $7.9 billion and is part of the technology sector. The company has a P/E ratio of 76.1, above the S&P 500 P/E ratio of 17.7. Shares are down 22.9% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Rackspace Hosting a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Rackspace Hosting as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Rackspace Hosting 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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