3 Stocks Moving The Computer Software & Services Industry Upward

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 10 points (-0.1%) at 15,618 as of Friday, Aug. 2, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,354 issues advancing vs. 1,554 declining with 118 unchanged.

The Computer Software & Services industry currently sits up 0.1% versus the S&P 500, which is down 0.1%. Top gainers within the industry include Autodesk ( ADSK), up 2.1%, Catamaran ( CTRX), up 1.6% and Salesforce.com ( CRM), up 0.6%. On the negative front, top decliners within the industry include Activision Blizzard ( ATVI), down 2.5%, and Automatic Data Processing ( ADP), down 0.5%.

TheStreet would like to highlight 3 stocks pushing the industry higher today:

3. NIC ( EGOV) is one of the companies pushing the Computer Software & Services industry higher today. As of noon trading, NIC is up $2.88 (15.0%) to $22.04 on heavy volume. Thus far, 639,317 shares of NIC exchanged hands as compared to its average daily volume of 283,300 shares. The stock has ranged in price between $19.90-$22.80 after having opened the day at $19.90 as compared to the previous trading day's close of $19.16.

NIC Inc. provides eGovernment services that enable governments use the Internet to provide various services to businesses and citizens in the United States. It operates in two segments, Outsourced Portals, and Other Software & Services. NIC has a market cap of $1.2 billion and is part of the technology sector. Shares are up 12.7% year to date as of the close of trading on Thursday. Currently there are 2 analysts that rate NIC a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates NIC 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, notable return on equity, 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 NIC Ratings Report now.

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2. As of noon trading, ServiceSource International ( SREV) is up $1.96 (18.4%) to $12.60 on heavy volume. Thus far, 3.0 million shares of ServiceSource International exchanged hands as compared to its average daily volume of 813,400 shares. The stock has ranged in price between $11.40-$13.03 after having opened the day at $11.48 as compared to the previous trading day's close of $10.64.

ServiceSource International, Inc. provides recurring revenue management contracts maintenance, support, and subscription for technology and technology-enabled healthcare, and life sciences companies. ServiceSource International has a market cap of $817.5 million and is part of the technology sector. Shares are up 82.4% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate ServiceSource International a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates ServiceSource International as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. Get the full ServiceSource International 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, Sap ( SAP) is up $1.00 (1.4%) to $75.08 on light volume. Thus far, 495,371 shares of Sap exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $74.22-$75.13 after having opened the day at $74.36 as compared to the previous trading day's close of $74.08.

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 $86.9 billion and is part of the technology sector. Shares are down 9.3% year to date as of the close of trading on Thursday. Currently there are 4 analysts that rate Sap a buy, 2 analysts rate it a sell, and 12 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, reasonable valuation levels, good cash flow from operations, expanding profit margins and increase in stock price during the past year. 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.

If you are interested in one of these 3 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).
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