SSNC, VMW And MSFT, Pushing Computer Software & Services Industry Downward

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 lower today:

3. SS&C Technologies Holdings ( SSNC) is one of the companies pushing the Computer Software & Services industry lower today. As of noon trading, SS&C Technologies Holdings is down $3.19 (-9.3%) to $31.01 on heavy volume Thus far, 1.9 million shares of SS&C Technologies Holdings exchanged hands as compared to its average daily volume of 279,100 shares. The stock has ranged in price between $30.83-$31.90 after having opened the day at $31.84 as compared to the previous trading day's close of $34.20.

SS&C Technologies Holdings, Inc. provides software products and software-enabled services to financial services providers worldwide. SS&C Technologies Holdings has a market cap of $2.6 billion and is part of the technology sector. The company has a P/E ratio of 56.6, above the S&P 500 P/E ratio of 17.7. Shares are up 44.7% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates SS&C Technologies Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full SS&C Technologies Holdings Ratings Report now.

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2. As of noon trading, VMWare ( VMW) is down $1.95 (-2.5%) to $74.99 on average volume Thus far, 1.9 million shares of VMWare exchanged hands as compared to its average daily volume of 2.7 million shares. The stock has ranged in price between $74.87-$76.75 after having opened the day at $76.09 as compared to the previous trading day's close of $76.94.

VMware, Inc. provides virtualization infrastructure solutions in the United States and internationally. VMWare has a market cap of $9.8 billion and is part of the technology sector. The company has a P/E ratio of 45.5, above the S&P 500 P/E ratio of 17.7. Shares are down 18.3% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates VMWare 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, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full VMWare Ratings Report now.

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1. As of noon trading, Microsoft Corporation ( MSFT) is down $0.16 (-0.5%) to $32.83 on average volume Thus far, 23.2 million shares of Microsoft Corporation exchanged hands as compared to its average daily volume of 51.1 million shares. The stock has ranged in price between $32.59-$32.98 after having opened the day at $32.85 as compared to the previous trading day's close of $32.99.

Microsoft Corporation develops, licenses, and supports software products and services; and designs and sells hardware worldwide. Microsoft Corporation has a market cap of $278.2 billion and is part of the technology sector. The company has a P/E ratio of 17.2, below the S&P 500 P/E ratio of 17.7. Shares are up 24.7% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Microsoft Corporation 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, expanding profit margins and increase in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Microsoft Corporation Ratings Report now.

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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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