CDNS, RAX And CERN, Pushing Computer Software & Services Industry Downward

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 105 points (0.6%) at 16,554 as of Tuesday, April 22, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 2,226 issues advancing vs. 749 declining with 155 unchanged.

The Computer Software & Services industry currently sits up 0.9% versus the S&P 500, which is up 0.6%. A company within the industry that fell today was AthenaHealth ( ATHN), up 4.3%. Top gainers within the industry include Workday ( WDAY), up 3.7%, ServiceNow ( NOW), up 3.0%, NCR Corporation ( NCR), up 2.9%, NetSuite ( N), up 2.9% and Splunk ( SPLK), up 2.3%.

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

3. Cadence Design Systems ( CDNS) is one of the companies pushing the Computer Software & Services industry lower today. As of noon trading, Cadence Design Systems is down $0.51 (-3.4%) to $14.33 on heavy volume. Thus far, 5.5 million shares of Cadence Design Systems exchanged hands as compared to its average daily volume of 3.2 million shares. The stock has ranged in price between $13.63-$14.65 after having opened the day at $14.03 as compared to the previous trading day's close of $14.84.

Cadence Design Systems, Inc. develops, sells or leases, and licenses electronic design automation (EDA) software, emulation hardware, verification intellectual property (VIP), and design intellectual property (design IP) for semiconductor and electronics systems companies worldwide. Cadence Design Systems has a market cap of $4.3 billion and is part of the technology sector. Shares are up 5.8% year-to-date as of the close of trading on Monday. Currently there are 7 analysts that rate Cadence Design Systems a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Cadence Design Systems 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, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Cadence Design Systems 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, Rackspace Hosting ( RAX) is down $0.82 (-2.6%) to $30.50 on average volume. Thus far, 1.5 million shares of Rackspace Hosting exchanged hands as compared to its average daily volume of 3.1 million shares. The stock has ranged in price between $30.26-$31.33 after having opened the day at $31.06 as compared to the previous trading day's close of $31.32.

Rackspace Hosting, Inc., through its subsidiaries, provides cloud computing services and managing Web-based IT systems for small and medium-sized businesses and large enterprises worldwide. Rackspace Hosting has a market cap of $4.5 billion and is part of the technology sector. Shares are down 20.0% year-to-date as of the close of trading on Monday. Currently there are 8 analysts that rate Rackspace Hosting a buy, 2 analysts rate it a sell, and 8 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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income. 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.

1. As of noon trading, Cerner Corporation ( CERN) is down $0.42 (-0.8%) to $53.69 on average volume. Thus far, 717,846 shares of Cerner Corporation exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $53.63-$54.29 after having opened the day at $53.99 as compared to the previous trading day's close of $54.11.

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 $18.5 billion and is part of the technology sector. Shares are down 2.9% year-to-date as of the close of trading on Monday. Currently there are 14 analysts that rate Cerner Corporation a buy, 1 analyst rates it a sell, and 8 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. 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.

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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