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.

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 lower today:

3. Splunk ( SPLK) is one of the companies pushing the Computer Software & Services industry lower today. As of noon trading, Splunk is down $2.87 (-6.0%) to $45.36 on average volume. Thus far, 2.1 million shares of Splunk exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $44.74-$48.50 after having opened the day at $48.23 as compared to the previous trading day's close of $48.23.

Splunk, Inc. provides software solutions that provide real-time operational intelligence in the United States and internationally. Splunk has a market cap of $5.5 billion and is part of the technology sector. Shares are down 29.8% year-to-date as of the close of trading on Monday. Currently there are 14 analysts that rate Splunk a buy, no analysts rate 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 and feeble growth in its earnings per share. Get the full Splunk 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, Qihoo 360 Technology ( QIHU) is down $3.36 (-4.0%) to $80.62 on average volume. Thus far, 1.7 million shares of Qihoo 360 Technology exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $80.54-$84.75 after having opened the day at $84.23 as compared to the previous trading day's close of $83.98.

Qihoo 360 Technology Co. Ltd. provides Internet and mobile security products and services in the People's Republic of China. Qihoo 360 Technology has a market cap of $9.8 billion and is part of the technology sector. Shares are up 2.4% year-to-date as of the close of trading on Monday. Currently there are 9 analysts that rate Qihoo 360 Technology a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Qihoo 360 Technology as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and compelling growth in net income. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation. Get the full Qihoo 360 Technology 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, Salesforce.com ( CRM) is down $1.08 (-2.0%) to $52.34 on average volume. Thus far, 2.7 million shares of Salesforce.com exchanged hands as compared to its average daily volume of 6.7 million shares. The stock has ranged in price between $52.32-$54.21 after having opened the day at $53.88 as compared to the previous trading day's close of $53.43.

salesforce.com, inc. provides enterprise cloud computing solutions to various businesses and industries worldwide. Salesforce.com has a market cap of $30.9 billion and is part of the technology sector. Shares are down 3.2% year-to-date as of the close of trading on Monday. Currently there are 27 analysts that rate Salesforce.com a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Salesforce.com as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and generally higher debt management risk. Get the full Salesforce.com 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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