Computer Software & Services Stocks On The Rise With Help From 3 Stocks

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

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 5 points (0.0%) at 15,100 as of Thursday, May 9, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 1,176 issues advancing vs. 1,742 declining with 136 unchanged.

The Computer Software & Services industry currently sits down 0.54 versus the S&P 500, which is down 0.21. On the negative front, top decliners within the industry include Rackspace Hosting ( RAX), down 26.26, Activision Blizzard ( ATVI), down 7.48, Adobe Systems ( ADBE), down 3.41 and Sap AG ADR ( SAP), down 0.81.

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

3. Xerox Corporation ( XRX) is one of the companies pushing the Computer Software & Services industry higher today. As of noon trading, Xerox Corporation is up $0.18 (2.10) to $8.98 on average volume Thus far, 5.3 million shares of Xerox Corporation exchanged hands as compared to its average daily volume of 9.4 million shares. The stock has ranged in price between $8.81-$9.00 after having opened the day at $8.83 as compared to the previous trading day's close of $8.80.

Xerox Corporation provides business process and document management services worldwide. Xerox Corporation has a market cap of $10.8 billion and is part of the technology sector. The company has a P/E ratio of 9.5, below the S&P 500 P/E ratio of 17.7. Shares are up 29.0% year to date as of the close of trading on Wednesday. Currently there are 5 analysts that rate Xerox Corporation a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Xerox Corporation as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels, notable return on equity, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Xerox Corporation Ratings Report now.

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2. As of noon trading, Automatic Data Processing ( ADP) is up $1.31 (1.91) to $69.87 on heavy volume Thus far, 1.5 million shares of Automatic Data Processing exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $68.80-$69.92 after having opened the day at $68.89 as compared to the previous trading day's close of $68.56.

Automatic Data Processing, Inc. and its subsidiaries provide business outsourcing solutions. The company operates in three segments: Employer Services, Professional Employer Organization (PEO) Services, and Dealer Services. Automatic Data Processing has a market cap of $33.3 billion and is part of the technology sector. The company has a P/E ratio of 23.9, above the S&P 500 P/E ratio of 17.7. Shares are up 20.6% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Automatic Data Processing a buy, 2 analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Automatic Data Processing as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures 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 Automatic Data Processing Ratings Report now.

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1. As of noon trading, Salesforce.com ( CRM) is up $0.89 (2.10) to $43.26 on light volume Thus far, 2.1 million shares of Salesforce.com exchanged hands as compared to its average daily volume of 6.1 million shares. The stock has ranged in price between $42.28-$43.37 after having opened the day at $42.30 as compared to the previous trading day's close of $42.37.

salesforce.com, inc. provides enterprise cloud computing solutions to various businesses and industries worldwide. Salesforce.com has a market cap of $24.8 billion and is part of the technology sector. Shares are up 0.8% year to date as of the close of trading on Wednesday. Currently there are 27 analysts that rate Salesforce.com a buy, 2 analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Salesforce.com as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share. Get the full Salesforce.com Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

If you are interested in one of these 3 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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