Computer Software & Services Stocks On The Rise With Help From 3 Stocks

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 11 points (0.1%) at 16,218 as of Tuesday, Feb. 25, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,600 issues advancing vs. 1,298 declining with 186 unchanged.

The Computer Software & Services industry currently sits down 0.1% versus the S&P 500, which is up 0.2%. A company within the industry that increased today was Catamaran ( CTRX), up 2.1%. A company within the industry that fell today was Realpage ( RP), up 22.2%.

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

3. Rackspace Hosting ( RAX) is one of the companies pushing the Computer Software & Services industry higher today. As of noon trading, Rackspace Hosting is up $1.29 (3.7%) to $35.84 on heavy volume. Thus far, 5.2 million shares of Rackspace Hosting exchanged hands as compared to its average daily volume of 3.5 million shares. The stock has ranged in price between $34.53-$37.38 after having opened the day at $34.64 as compared to the previous trading day's close of $34.55.

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 $4.7 billion and is part of the technology sector. Shares are down 11.7% year-to-date as of the close of trading on Monday. Currently there are 7 analysts who rate Rackspace Hosting a buy, 2 analysts rate it a sell, and 12 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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. Get the full Rackspace Hosting 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, Splunk ( SPLK) is up $1.43 (1.6%) to $92.18 on average volume. Thus far, 786,026 shares of Splunk exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $90.14-$93.08 after having opened the day at $92.85 as compared to the previous trading day's close of $90.75.

Splunk, Inc. provides software solutions that provide real-time operational intelligence. Splunk has a market cap of $10.0 billion and is part of the technology sector. Shares are up 32.1% year-to-date as of the close of trading on Monday. Currently there are 12 analysts who rate Splunk a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates Splunk as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share. Get the full Splunk 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, Oracle Corporation ( ORCL) is up $0.21 (0.6%) to $38.35 on light volume. Thus far, 4.1 million shares of Oracle Corporation exchanged hands as compared to its average daily volume of 17.7 million shares. The stock has ranged in price between $37.89-$38.42 after having opened the day at $38.06 as compared to the previous trading day's close of $38.14.

Oracle Corporation develops, manufactures, markets, hosts, and supports database and middleware software, applications software, and hardware systems. Oracle Corporation has a market cap of $171.4 billion and is part of the technology sector. Shares are down 0.3% year-to-date as of the close of trading on Monday. Currently there are 15 analysts who rate Oracle Corporation a buy, 1 analyst rates it a sell, and 8 rate it a hold.

TheStreet Ratings rates Oracle Corporation as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Oracle 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 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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