4 Computer Software & Services Stocks Dragging The Industry Down

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 20 points (-0.1%) at 15,298 as of Wednesday, June 19, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 2,604 issues advancing vs. 474 declining with 57 unchanged.

The Computer Software & Services industry currently sits up 0.8% versus the S&P 500, which is down 0.17.

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

4. Cerner Corporation ( CERN) is one of the companies pushing the Computer Software & Services industry lower today. As of noon trading, Cerner Corporation is down $0.69 (-0.7%) to $98.32 on light volume Thus far, 143,579 shares of Cerner Corporation exchanged hands as compared to its average daily volume of 770,300 shares. The stock has ranged in price between $98.16-$99.21 after having opened the day at $99.08 as compared to the previous trading day's close of $99.01.

Cerner Corporation designs, develops, markets, installs, hosts, and supports healthcare information technology, healthcare devices, hardware, and content solutions for healthcare organizations and consumers worldwide. Cerner Corporation has a market cap of $16.9 billion and is part of the technology sector. The company has a P/E ratio of 41.4, above the S&P 500 P/E ratio of 17.7. Shares are up 26.7% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate Cerner Corporation a buy, 1 analyst rates it a sell, and 9 rate it a hold.

TheStreet Ratings rates Cerner 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, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Cerner Corporation Ratings Report now.

STOCKS TO BUY: 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, Rackspace Hosting ( RAX) is down $1.33 (-3.5%) to $36.32 on average volume Thus far, 909,258 shares of Rackspace Hosting exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $36.16-$37.76 after having opened the day at $37.69 as compared to the previous trading day's close of $37.65.

Rackspace Hosting, Inc., through its subsidiaries, provides cloud computing services, managing Web-based IT systems for small and medium-sized businesses, and large enterprises worldwide. Rackspace Hosting has a market cap of $4.9 billion and is part of the technology sector. The company has a P/E ratio of 46.2, above the S&P 500 P/E ratio of 17.7. Shares are down 49.3% year to date as of the close of trading on Tuesday. Currently there are 5 analysts that rate Rackspace Hosting a buy, 2 analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates Rackspace Hosting as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity. Get the full Rackspace Hosting Ratings Report now.

STOCKS TO BUY: 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, Activision Blizzard ( ATVI) is down $0.16 (-1.1%) to $14.44 on average volume Thus far, 5.2 million shares of Activision Blizzard exchanged hands as compared to its average daily volume of 7.1 million shares. The stock has ranged in price between $14.28-$14.65 after having opened the day at $14.56 as compared to the previous trading day's close of $14.59.

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 $16.5 billion and is part of the technology sector. The company has a P/E ratio of 13.6, below the S&P 500 P/E ratio of 17.7. Shares are up 38.7% year to date as of the close of trading on Tuesday. 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.

STOCKS TO BUY: 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, CA ( CA) is down $0.23 (-0.8%) to $28.40 on average volume Thus far, 1.7 million shares of CA exchanged hands as compared to its average daily volume of 3.7 million shares. The stock has ranged in price between $28.17-$28.69 after having opened the day at $28.69 as compared to the previous trading day's close of $28.64.

CA Technologies, together with its subsidiaries, provides enterprise information technology (IT) management software and solutions that help customers manage and secure IT environments in the United States and internationally. CA has a market cap of $12.9 billion and is part of the technology 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 30.3% year to date as of the close of trading on Tuesday. Currently there is 1 analyst that rates CA a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates CA as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full CA Ratings Report now.

STOCKS TO BUY: 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.

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