Catamaran Corp (CTRX): 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

Catamaran ( CTRX) 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 0.7%. By the end of trading, Catamaran fell $0.69 (-1.3%) to $52.84 on average volume. Throughout the day, 1,628,651 shares of Catamaran exchanged hands as compared to its average daily volume of 1,677,900 shares. The stock ranged in price between $52.47-$53.66 after having opened the day at $53.53 as compared to the previous trading day's close of $53.53. Other companies within the Computer Software & Services industry that declined today were: Mediabistro ( MBIS), down 11.4%, Webmedia Brands ( WEBM), down 11.4%, TigerLogic Corporation ( TIGR), down 7.7% and TSR ( TSRI), down 5.1%.
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Catamaran Corporation provides pharmacy benefit management (PBM) services and healthcare information technology (HCIT) solutions to the healthcare benefits management industry in North America. The company operates in two segments: PBM and HCIT. Catamaran has a market cap of $11.0 billion and is part of the health care sector. The company has a P/E ratio of 72.5, above the S&P 500 P/E ratio of 17.7. Shares are up 13.7% year to date as of the close of trading on Monday. Currently there are 16 analysts that rate Catamaran a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Catamaran 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, good cash flow from operations, compelling growth in net income 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, Datawatch Corporation ( DWCH), down 16.7%, Marketo ( MKTO), down 12.0%, Park City Group ( PCYG), down 11.6% and Mattersight ( MATR), down 10.1% , were all gainers within the computer software & services industry with Symantec ( SYMC) 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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