4 Computer Software & Services Stocks On The Rise

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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 46 points (-0.3%) at 15,208 as of Tuesday, June 4, 2013, 12:49 PM ET. The NYSE advances/declines ratio sits at 1,093 issues advancing vs. 1,832 declining with 114 unchanged.

The Computer Software & Services industry currently sits down 0.35 versus the S&P 500, which is down 0.24. On the negative front, top decliners within the industry include Fidelity National Information Services ( FIS), down 1.43, Activision Blizzard ( ATVI), down 1.03 and Automatic Data Processing ( ADP), down 0.73.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry higher today:

4. Xerox Corporation ( XRX) is one of the companies pushing the Computer Software & Services industry higher today. As of noon trading, Xerox Corporation is up $0.12 (1.35) to $9.02 on light volume Thus far, 3.1 million shares of Xerox Corporation exchanged hands as compared to its average daily volume of 9.1 million shares. The stock has ranged in price between $8.92-$9.07 after having opened the day at $8.93 as compared to the previous trading day's close of $8.90.

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 9.6, below the S&P 500 P/E ratio of 17.7. Shares are up 30.5% year to date as of the close of trading on Monday. 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.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

3. As of noon trading, Sap ( SAP) is up $0.43 (0.57) to $75.29 on heavy volume Thus far, 977,360 shares of Sap exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $75.06-$75.50 after having opened the day at $75.32 as compared to the previous trading day's close of $74.86.

SAP AG provides enterprise application software and software-related services worldwide. It offers products in applications, analytics, cloud, mobile, and database and technology categories. Sap has a market cap of $87.6 billion and is part of the technology sector. The company has a P/E ratio of 19.6, above the S&P 500 P/E ratio of 17.7. Shares are down 6.9% year to date as of the close of trading on Monday. Currently there are 4 analysts that rate Sap a buy, 2 analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Sap as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, increase in net income 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 Sap Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, Adobe Systems ( ADBE) is up $1.04 (2.38) to $44.50 on average volume Thus far, 2.7 million 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 $43.53-$44.80 after having opened the day at $43.67 as compared to the previous trading day's close of $43.46.

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 $21.5 billion and is part of the technology sector. The company has a P/E ratio of 29.8, above the S&P 500 P/E ratio of 17.7. Shares are up 13.9% year to date as of the close of trading on Monday. Currently there are 8 analysts that rate Adobe Systems a buy, 1 analyst rates it a sell, and 10 rate it a hold.

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.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, Cognizant Technology Solutions Corporation ( CTSH) is up $0.51 (0.78) to $65.38 on light volume Thus far, 1.1 million shares of Cognizant Technology Solutions Corporation exchanged hands as compared to its average daily volume of 3.8 million shares. The stock has ranged in price between $65.06-$65.88 after having opened the day at $65.30 as compared to the previous trading day's close of $64.87.

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 $19.5 billion and is part of the technology sector. The company has a P/E ratio of 18.1, above the S&P 500 P/E ratio of 17.7. Shares are down 12.5% year to date as of the close of trading on Monday. Currently there are 19 analysts that rate Cognizant Technology Solutions Corporation a buy, no analysts rate it a sell, and 3 rate it a hold.

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.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you are interested in one of these 4 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.

null

More from Markets

Replay: Jim Cramer on Tariffs, the Market Rally, Caterpillar and Micron

Replay: Jim Cramer on Tariffs, the Market Rally, Caterpillar and Micron

Video: When Planning for Retirement, Don't Underestimate Your Life Span

Video: When Planning for Retirement, Don't Underestimate Your Life Span

Video: Here's What May Come Next for Theranos Founder and CEO Elizabeth Holmes

Video: Here's What May Come Next for Theranos Founder and CEO Elizabeth Holmes

Charlie Gasparino Says GE Is Reportedly Looking to Slash Its Dividend Again

Charlie Gasparino Says GE Is Reportedly Looking to Slash Its Dividend Again

GE Confirms $11.1 Billion Transportation Merger With Wabtec

GE Confirms $11.1 Billion Transportation Merger With Wabtec