Autodesk Inc. (ADSK): 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

Autodesk ( ADSK) 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 0.8%. By the end of trading, Autodesk fell $2.67 (-6.7%) to $37.11 on heavy volume. Throughout the day, 16,933,715 shares of Autodesk exchanged hands as compared to its average daily volume of 2,896,000 shares. The stock ranged in price between $34.40-$37.33 after having opened the day at $36.75 as compared to the previous trading day's close of $39.78. Other companies within the Computer Software & Services industry that declined today were: Wave Systems Corporation ( WAVX), down 8.8%, NQ Mobile ( NQ), down 7.1%, China Information Technology ( CNIT), down 6.0% and Demandware ( DWRE), down 4.8%.
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Autodesk, Inc. operates as a design software and services company worldwide. Autodesk has a market cap of $8.8 billion and is part of the technology sector. The company has a P/E ratio of 36.9, above the S&P 500 P/E ratio of 17.7. Shares are up 11.5% year to date as of the close of trading on Thursday. Currently there are 7 analysts that rate Autodesk a buy, 1 analyst rates it a sell, and 7 rate it a hold.

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

On the positive front, DataTRAK International Incorporated ( DATA), down 63.7%, BOS Better Online Solutions ( BOSC), down 7.1%, TigerLogic Corporation ( TIGR), down 7.0% and Intelligent Systems ( INS), down 6.7% , were all gainers within the computer software & services industry with Cognizant Technology Solutions Corporation ( CTSH) 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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