5 Stocks Underperforming Today In The Computer Software & Services Industry

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%. 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. 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%.

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

5. Red Hat ( RHT) is one of the companies pushing the Computer Software & Services industry lower today. As of noon trading, Red Hat is down $2.27 (-4.1%) to $52.72 on heavy volume Thus far, 2.3 million shares of Red Hat exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $52.36-$54.70 after having opened the day at $54.47 as compared to the previous trading day's close of $54.99.

Red Hat, Inc. provides open source software solutions primarily to enterprise customers worldwide. The company develops and offers operating system, middleware, virtualization, storage, and cloud technologies. Red Hat has a market cap of $10.4 billion and is part of the technology sector. The company has a P/E ratio of 71.1, above the S&P 500 P/E ratio of 17.7. Shares are up 3.8% year to date as of the close of trading on Friday.

TheStreet Ratings rates Red Hat 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, growth in earnings per share, increase in net income 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 Red Hat 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 liked this article you might like

Pret A Manger Takeover in the Works; Cisco's M&A Shackles Come Off - ICYMI

John Chambers' Exit From Cisco Could Pave the Way for Big Moves

Jim Cramer on Nordstrom's Plans to Go Private

Cramer: This Rally Isn't Without Meaning

How Microsoft and Other Software Giants Are Growing in a Cloud-Focused World