ADP, IBM 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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 14 points (-0.1%) at 16,929 as of Tuesday, June 10, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 966 issues advancing vs. 1,989 declining with 165 unchanged.

The Computer Software & Services industry currently sits down 0.3% versus the S&P 500, which is down 0.2%. A company within the industry that fell today was Cognizant Technology Solutions ( CTSH), up 4.0%.

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

3. Automatic Data Processing ( ADP) is one of the companies pushing the Computer Software & Services industry lower today. As of noon trading, Automatic Data Processing is down $0.55 (-0.7%) to $79.45 on average volume. Thus far, 877,266 shares of Automatic Data Processing exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $79.45-$80.37 after having opened the day at $79.72 as compared to the previous trading day's close of $80.00.

Automatic Data Processing, Inc., together with its subsidiaries, provides technology-based outsourcing solutions to employers and vehicle retailers and manufacturers worldwide. Automatic Data Processing has a market cap of $38.4 billion and is part of the technology sector. Shares are down 1.0% year-to-date as of the close of trading on Monday. Currently there are 5 analysts that rate Automatic Data Processing a buy, 2 analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Automatic Data Processing as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, growth in earnings per share and increase in stock price during the past year. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Automatic Data Processing 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, International Business Machines ( IBM) is down $1.76 (-0.9%) to $184.46 on average volume. Thus far, 1.9 million shares of International Business Machines exchanged hands as compared to its average daily volume of 4.8 million shares. The stock has ranged in price between $184.30-$186.22 after having opened the day at $186.20 as compared to the previous trading day's close of $186.22.

International Business Machines Corporation provides information technology (IT) products and services worldwide. International Business Machines has a market cap of $188.6 billion and is part of the technology sector. Shares are down 0.7% year-to-date as of the close of trading on Monday. Currently there are 4 analysts that rate International Business Machines a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates International Business Machines as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full International Business Machines 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 $0.20 (-0.5%) to $41.06 on light volume. Thus far, 6.9 million shares of Microsoft exchanged hands as compared to its average daily volume of 33.1 million shares. The stock has ranged in price between $40.86-$41.16 after having opened the day at $41.03 as compared to the previous trading day's close of $41.27.

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 $342.6 billion and is part of the technology sector. Shares are up 10.3% year-to-date as of the close of trading on Monday. Currently there are 10 analysts that rate Microsoft a buy, 1 analyst rates it a sell, and 12 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, increase in stock price during the past year 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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