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.

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 24 points (0.1%) at 16,720 as of Tuesday, May 13, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,382 issues advancing vs. 1,595 declining with 161 unchanged.

The Computer Software & Services industry currently sits down 0.9% versus the S&P 500, which is unchanged.

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 $2.25 (8.2%) to $29.78 on heavy volume. Thus far, 10.9 million shares of Rackspace Hosting exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $29.44-$31.60 after having opened the day at $31.43 as compared to the previous trading day's close of $27.53.

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 $3.7 billion and is part of the technology sector. Shares are down 29.6% year-to-date as of the close of trading on Monday. Currently there are 8 analysts who 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, 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.

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