3 Computer Software & Services Stocks Dragging The Industry Down

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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 14 points (0.1%) at 14,951 as of Friday, Sept. 6, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,968 issues advancing vs. 907 declining with 132 unchanged.

The Computer Software & Services industry currently sits up 0.2% versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the industry include Konami Corporation ( KNM), down 2.9%, and Catamaran ( CTRX), down 0.9%. Top gainers within the industry include Splunk ( SPLK), up 2.1%, Rackspace Hosting ( RAX), up 1.9%, Nuance Communications ( NUAN), up 1.5%, Infosys ( INFY), up 0.9% and Sap ( SAP), up 0.7%.

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

3. ServiceNow ( NOW) is one of the companies pushing the Computer Software & Services industry lower today. As of noon trading, ServiceNow is down $1.01 (-2.1%) to $46.59 on average volume. Thus far, 825,403 shares of ServiceNow exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $46.59-$48.00 after having opened the day at $47.83 as compared to the previous trading day's close of $47.60.

ServiceNow, Inc. engages in the provision of cloud-based services to automate enterprise IT operations primarily in North America, Europe, the Middle East, Africa, and the Asia Pacific. ServiceNow has a market cap of $6.5 billion and is part of the technology sector. Shares are up 58.5% year to date as of the close of trading on Thursday. Currently there are 7 analysts that rate ServiceNow a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates ServiceNow as a sell. Among the areas we feel are negative, one of the most important has been generally deteriorating net income. Get the full ServiceNow 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, Electronic Arts ( EA) is down $0.96 (-3.5%) to $26.72 on average volume. Thus far, 2.8 million shares of Electronic Arts exchanged hands as compared to its average daily volume of 3.8 million shares. The stock has ranged in price between $26.46-$27.41 after having opened the day at $27.37 as compared to the previous trading day's close of $27.68.

Electronic Arts Inc. develops, markets, publishes, and distributes game software content and services for video game consoles, personal computers, mobile phones, tablets and electronic readers, and the Internet. Electronic Arts has a market cap of $8.6 billion and is part of the technology sector. Shares are up 90.6% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate Electronic Arts a buy, 1 analyst rates it a sell, and 9 rate it a hold.

TheStreet Ratings rates Electronic Arts as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Electronic Arts 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, Activision Blizzard ( ATVI) is down $0.33 (-1.9%) to $16.84 on average volume. Thus far, 2.9 million shares of Activision Blizzard exchanged hands as compared to its average daily volume of 7.2 million shares. The stock has ranged in price between $16.77-$17.31 after having opened the day at $17.31 as compared to the previous trading day's close of $17.17.

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 $19.1 billion and is part of the technology sector. Shares are up 61.0% year to date as of the close of trading on Thursday. 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 solid stock price performance, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. 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.

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).

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