TRI, ANSS And MSFT, 3 Computer Software & Services Stocks Pushing The Industry Lower

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 up today with the Dow Jones Industrial Average ( ^DJI) trading down 3 points (0.0%) at 16,578 as of Thursday, May 1, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,778 issues advancing vs. 1,187 declining with 180 unchanged.

The Computer Software & Services industry currently sits up 1.2% versus the S&P 500, which is up 0.1%. Top gainers within the industry include Catamaran ( CTRX), up 11.5%, Gartner ( IT), up 6.1%, ServiceNow ( NOW), up 4.7%, Splunk ( SPLK), up 4.1% and Salesforce.com ( CRM), up 3.3%.

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

3. Thomson Reuters ( TRI) is one of the companies pushing the Computer Software & Services industry lower today. As of noon trading, Thomson Reuters is down $0.45 (-1.2%) to $35.73 on average volume. Thus far, 476,348 shares of Thomson Reuters exchanged hands as compared to its average daily volume of 861,100 shares. The stock has ranged in price between $35.70-$36.42 after having opened the day at $36.18 as compared to the previous trading day's close of $36.18.

Thomson Reuters Corporation provides intelligent information for businesses and professionals worldwide. The company sells electronic content and services to professionals, primarily on a subscription basis. Thomson Reuters has a market cap of $28.4 billion and is part of the services sector. The company has a P/E ratio of 226.9, above the S&P 500 P/E ratio of 17.7. Shares are down 4.3% year-to-date as of the close of trading on Wednesday. Currently there are 5 analysts that rate Thomson Reuters a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Thomson Reuters as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity. Get the full Thomson Reuters 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, Ansys ( ANSS) is down $3.06 (-4.0%) to $73.25 on heavy volume. Thus far, 410,079 shares of Ansys exchanged hands as compared to its average daily volume of 531,600 shares. The stock has ranged in price between $71.50-$75.54 after having opened the day at $75.54 as compared to the previous trading day's close of $76.31.

ANSYS, Inc. develops and markets engineering simulation software and services used by engineers, designers, researchers, and students in the aerospace, automotive, manufacturing, electronics, biomedical, energy, and defense industries, as well as academia worldwide. Ansys has a market cap of $7.1 billion and is part of the technology sector. The company has a P/E ratio of 29.4, above the S&P 500 P/E ratio of 17.7. Shares are down 12.6% year-to-date as of the close of trading on Wednesday. Currently there are 4 analysts that rate Ansys a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Ansys 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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Ansys 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, Microsoft ( MSFT) is down $0.24 (-0.6%) to $40.16 on light volume. Thus far, 12.0 million shares of Microsoft exchanged hands as compared to its average daily volume of 36.8 million shares. The stock has ranged in price between $40.07-$40.36 after having opened the day at $40.24 as compared to the previous trading day's close of $40.40.

Microsoft Corporation develops, licenses, and supports software, services, and hardware devices. Its Windows division offers Windows operating system; Windows Services suite of applications and Web services, including Outlook.com and SkyDrive; Surface RT and Pro devices; and PC accessories. Microsoft has a market cap of $334.6 billion and is part of the technology sector. The company has a P/E ratio of 14.7, below the S&P 500 P/E ratio of 17.7. Shares are up 8.3% year-to-date as of the close of trading on Wednesday. Currently there are 10 analysts that rate Microsoft a buy, 1 analyst rates it a sell, and 14 rate it a hold.

TheStreet Ratings rates Microsoft 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, reasonable valuation levels, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Microsoft 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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