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.

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4. As of noon trading, Intuit ( INTU) is down $0.98 (-1.6%) to $59.65 on light volume Thus far, 746,076 shares of Intuit exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $59.64-$60.75 after having opened the day at $60.34 as compared to the previous trading day's close of $60.63.

Intuit Inc. provides business and financial management solutions for small businesses, consumers, accounting professionals, and financial institutions primarily in the United States, Canada, the United Kingdom, India, and Singapore. Intuit has a market cap of $17.7 billion and is part of the technology sector. The company has a P/E ratio of 25.1, above the S&P 500 P/E ratio of 17.7. Shares are up 0.6% year to date as of the close of trading on Friday.

TheStreet Ratings rates Intuit as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Intuit Ratings Report now.

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3. As of noon trading, Adobe Systems ( ADBE) is down $0.34 (-0.8%) to $44.27 on light volume Thus far, 563,924 shares of Adobe Systems exchanged hands as compared to its average daily volume of 3.7 million shares. The stock has ranged in price between $44.27-$44.68 after having opened the day at $44.55 as compared to the previous trading day's close of $44.61.

Adobe Systems Incorporated operates as a diversified software company worldwide. It offers a line of software and services used by creative professionals, marketers, knowledge workers, application developers, enterprises, and consumers. Adobe Systems has a market cap of $22.4 billion and is part of the technology sector. The company has a P/E ratio of 30.9, above the S&P 500 P/E ratio of 17.7. Shares are up 18.3% year to date as of the close of trading on Friday.

TheStreet Ratings rates Adobe Systems as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, 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 sub par growth in net income. Get the full Adobe Systems Ratings Report now.

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2. As of noon trading, VMWare ( VMW) is down $2.35 (-3.0%) to $76.60 on average volume Thus far, 1.5 million shares of VMWare exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $75.75-$78.92 after having opened the day at $78.85 as compared to the previous trading day's close of $78.95.

VMware, Inc. provides virtualization infrastructure solutions in the United States and internationally. VMWare has a market cap of $10.1 billion and is part of the technology sector. The company has a P/E ratio of 47.0, above the S&P 500 P/E ratio of 17.7. Shares are down 16.1% year to date as of the close of trading on Friday.

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, Cognizant Technology Solutions Corporation ( CTSH) is down $0.99 (-1.5%) to $64.51 on average volume Thus far, 1.8 million shares of Cognizant Technology Solutions Corporation exchanged hands as compared to its average daily volume of 3.4 million shares. The stock has ranged in price between $64.33-$66.43 after having opened the day at $65.50 as compared to the previous trading day's close of $65.50.

Cognizant Technology Solutions Corporation provides information technology (IT), consulting, and business process outsourcing services worldwide. The company operates through four segments: Financial Services; Healthcare; Manufacturing, Retail, and Logistics; and Other. Cognizant Technology Solutions Corporation has a market cap of $19.1 billion and is part of the technology sector. The company has a P/E ratio of 17.7, equal to the S&P 500 P/E ratio of 17.7. Shares are down 14.4% year to date as of the close of trading on Friday.

TheStreet Ratings rates Cognizant Technology Solutions 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, reasonable valuation levels, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Cognizant Technology Solutions Corporation 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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