5 Computer Software & Services Stocks Pushing The 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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 12 points (0.1%) at 15,069 as of Wednesday, May 8, 2013, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,670 issues advancing vs. 1,254 declining with 121 unchanged.

The Computer Software & Services industry currently sits up 0.5% versus the S&P 500, which is up 0.2%. Top gainers within the industry include Fidelity National Information Services ( FIS), up 2.2%, Sap AG ADR ( SAP), up 1.1% and International Business Machines ( IBM), up 0.6%. On the negative front, top decliners within the industry include Infosys ( INFY), down 0.91, Adobe Systems ( ADBE), down 0.73 and Microsoft Corporation ( MSFT), down 0.66.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry higher today:

5. WebMD Health Corporation ( WBMD) is one of the companies pushing the Computer Software & Services industry higher today. As of noon trading, WebMD Health Corporation is up $4.67 (18.31) to $30.18 on heavy volume Thus far, 1.5 million shares of WebMD Health Corporation exchanged hands as compared to its average daily volume of 445,400 shares. The stock has ranged in price between $28.21-$30.69 after having opened the day at $28.21 as compared to the previous trading day's close of $25.51.

WebMD Health Corp. provides health information services to consumers, physicians and other healthcare professionals, employers, and health plans through its public and private online portals, mobile platforms, and health-focused publications in the United States. WebMD Health Corporation has a market cap of $1.3 billion and is part of the technology sector. Shares are up 77.9% year to date as of the close of trading on Tuesday. Currently there are 2 analysts that rate WebMD Health Corporation a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates WebMD Health 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 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 WebMD Health Corporation Ratings Report now.

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4. As of noon trading, Electronic Arts ( EA) is up $2.86 (15.54) to $21.27 on heavy volume Thus far, 15.2 million shares of Electronic Arts exchanged hands as compared to its average daily volume of 4.6 million shares. The stock has ranged in price between $19.80-$21.45 after having opened the day at $19.80 as compared to the previous trading day's close of $18.41.

Electronic Arts Inc. develops, markets, publishes, and distributes game software content and services for video game consoles, personal computers, mobile phones, tablets and electronic readers, and the Internet. Electronic Arts has a market cap of $5.5 billion and is part of the technology sector. The company has a P/E ratio of 37.3, above the S&P 500 P/E ratio of 17.7. Shares are up 26.0% year to date as of the close of trading on Tuesday. Currently there are 9 analysts that rate Electronic Arts a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Electronic Arts as a hold. 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 and expanding profit margins. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall. Get the full Electronic Arts Ratings Report now.

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3. As of noon trading, Activision Blizzard ( ATVI) is up $0.34 (2.24) to $15.28 on average volume Thus far, 3.9 million shares of Activision Blizzard exchanged hands as compared to its average daily volume of 7.7 million shares. The stock has ranged in price between $15.00-$15.30 after having opened the day at $15.01 as compared to the previous trading day's close of $14.94.

Activision Blizzard, Inc. publishes online, personal computer (PC), console, handheld, and mobile interactive entertainment products worldwide. It operates in three segments: Activision, Blizzard, and Distribution. Activision Blizzard has a market cap of $16.6 billion and is part of the technology sector. The company has a P/E ratio of 14.7, below the S&P 500 P/E ratio of 17.7. Shares are up 40.1% year to date as of the close of trading on Tuesday. 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, solid stock price performance 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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2. As of noon trading, Rackspace Hosting ( RAX) is up $1.91 (3.84) to $51.63 on average volume Thus far, 952,794 shares of Rackspace Hosting exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $49.51-$51.70 after having opened the day at $49.68 as compared to the previous trading day's close of $49.72.

Rackspace Hosting, Inc., through its subsidiaries, 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 $6.9 billion and is part of the technology sector. The company has a P/E ratio of 66.6, above the S&P 500 P/E ratio of 17.7. Shares are down 33.1% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate Rackspace Hosting a buy, 1 analyst rates it a sell, and 9 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 good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Rackspace Hosting Ratings Report now.

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1. As of noon trading, Cognizant Technology Solutions Corporation ( CTSH) is up $2.62 (4.04) to $67.50 on heavy volume Thus far, 4.2 million shares of Cognizant Technology Solutions Corporation exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $65.16-$68.22 after having opened the day at $68.00 as compared to the previous trading day's close of $64.88.

Cognizant Technology Solutions Corporation provides information technology (IT), consulting, and business process outsourcing services worldwide. The company operates through four segments: Financial Services; Healthcare; Manufacturing, Retail, and Logistics; and Other. Cognizant Technology Solutions Corporation has a market cap of $19.9 billion and is part of the technology sector. The company has a P/E ratio of 19.1, above the S&P 500 P/E ratio of 17.7. Shares are down 11.1% year to date as of the close of trading on Tuesday. Currently there are 19 analysts that rate Cognizant Technology Solutions Corporation a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Cognizant Technology Solutions Corporation 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, reasonable valuation levels, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Cognizant Technology Solutions Corporation Ratings Report now.

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If you are interested in one of these 5 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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