Computer Software & Services Stocks On The Rise With Help From 5 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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 14 points (0.1%) at 15,368 as of Monday, May 20, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,885 issues advancing vs. 1,048 declining with 118 unchanged.

The Computer Software & Services industry currently sits up 0.4% versus the S&P 500, which is up 0.1%. Top gainers within the industry include Pactera Technology International ( PACT), up 31.4%, Changyou.com ( CYOU), up 6.7% and Accenture ( ACN), up 0.6%. On the negative front, top decliners within the industry include Cerner Corporation ( CERN), down 1.76, Wipro ( WIT), down 1.40, Catamaran ( CTRX), down 1.33, Infosys ( INFY), down 1.15 and Automatic Data Processing ( ADP), down 1.26.

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

5. Thomson Reuters Corporation ( TRI) is one of the companies pushing the Computer Software & Services industry higher today. As of noon trading, Thomson Reuters Corporation is up $0.19 (0.55) to $34.70 on light volume Thus far, 210,293 shares of Thomson Reuters Corporation exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $34.29-$34.70 after having opened the day at $34.49 as compared to the previous trading day's close of $34.51.

Thomson Reuters Corporation provides intelligent information for businesses and professionals worldwide. It sells electronic content and services to professionals, primarily on a subscription basis. Thomson Reuters Corporation has a market cap of $28.5 billion and is part of the services sector. The company has a P/E ratio of 13.8, below the S&P 500 P/E ratio of 17.7. Shares are up 18.8% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate Thomson Reuters Corporation a buy, 2 analysts rate it a sell, and 8 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 reasonable valuation levels, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and poor profit margins. Get the full Thomson Reuters Corporation Ratings Report now.

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4. As of noon trading, Xerox Corporation ( XRX) is up $0.17 (1.93) to $8.99 on average volume Thus far, 4.1 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 $8.82 as compared to the previous trading day's close of $8.82.

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 29.3% year to date as of the close of trading on Friday. 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 stock price during the past year, increase in net income, attractive valuation levels, notable return on equity 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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3. As of noon trading, Activision Blizzard ( ATVI) is up $0.31 (2.08) to $15.25 on average volume Thus far, 3.4 million shares of Activision Blizzard exchanged hands as compared to its average daily volume of 7.2 million shares. The stock has ranged in price between $14.93-$15.46 after having opened the day at $14.93 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 13.3, below the S&P 500 P/E ratio of 17.7. Shares are up 39.9% year to date as of the close of trading on Friday. Currently there are 18 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, increase in stock price during the past year, attractive valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Activision Blizzard Ratings Report now.

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2. As of noon trading, 3D Systems Corporation ( DDD) is up $1.68 (3.60) to $48.34 on average volume Thus far, 3.3 million shares of 3D Systems Corporation exchanged hands as compared to its average daily volume of 4.8 million shares. The stock has ranged in price between $47.19-$49.10 after having opened the day at $47.52 as compared to the previous trading day's close of $46.66.

3D Systems Corporation, through its subsidiaries, develops, manufactures and markets 3D printers, print materials, on-demand custom parts services, and 3D authoring solutions for professionals and consumers. 3D Systems Corporation has a market cap of $4.2 billion and is part of the industrial goods sector. The company has a P/E ratio of 101.3, above the S&P 500 P/E ratio of 17.7. Shares are up 31.2% year to date as of the close of trading on Friday. Currently there are 5 analysts that rate 3D Systems Corporation a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates 3D Systems 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, expanding profit margins 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 3D Systems Corporation Ratings Report now.

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1. As of noon trading, Salesforce.com ( CRM) is up $0.45 (0.96) to $47.24 on average volume Thus far, 3.5 million shares of Salesforce.com exchanged hands as compared to its average daily volume of 6.0 million shares. The stock has ranged in price between $46.82-$47.58 after having opened the day at $47.14 as compared to the previous trading day's close of $46.79.

salesforce.com, inc. provides enterprise cloud computing solutions to various businesses and industries worldwide. Salesforce.com has a market cap of $27.2 billion and is part of the technology sector. Shares are up 11.3% year to date as of the close of trading on Friday. Currently there are 26 analysts that rate Salesforce.com a buy, 1 analyst rates 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, solid stock price performance and good cash flow from operations. 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 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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