3 Stocks Improving Performance Of The Computer Software & Services Industry

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 27 points (-0.2%) at 16,879 as of Thursday, June 19, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,678 issues advancing vs. 1,278 declining with 191 unchanged.

The Computer Software & Services industry currently sits down 0.3% versus the S&P 500, which is down 0.1%. Top gainers within the industry include Wipro ( WIT), up 0.7%, and Salesforce.com ( CRM), up 0.6%. On the negative front, top decliners within the industry include China Mobile Games and Entertainment Group ( CMGE), down 25.2%, Xerox Corporation ( XRX), down 1.9% and Cerner ( CERN), down 1.0%.

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

3. Red Hat ( RHT) is one of the companies pushing the Computer Software & Services industry higher today. As of noon trading, Red Hat is up $1.47 (2.8%) to $54.57 on heavy volume. Thus far, 4.6 million shares of Red Hat exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $54.51-$57.35 after having opened the day at $55.43 as compared to the previous trading day's close of $53.10.

Red Hat, Inc. provides open source software solutions to enterprise customers worldwide. It develops and offers operating system, virtualization, middleware, storage, and cloud technologies. Red Hat has a market cap of $9.9 billion and is part of the technology sector. Shares are down 5.2% year-to-date as of the close of trading on Wednesday. Currently there are 15 analysts who rate Red Hat a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Red Hat 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 growth in earnings per share. However, as a counter to these strengths, we find that the company's return on equity has been disappointing. Get the full Red Hat 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.

2. As of noon trading, Symantec ( SYMC) is up $0.20 (0.9%) to $22.15 on light volume. Thus far, 2.7 million shares of Symantec exchanged hands as compared to its average daily volume of 8.3 million shares. The stock has ranged in price between $21.98-$22.38 after having opened the day at $22.01 as compared to the previous trading day's close of $21.94.

Symantec Corporation, together with its subsidiaries, provides security, backup, and availability solutions worldwide. Its products and services protect people and information in any environment from mobile devices and enterprise data centers to cloud-based systems. Symantec has a market cap of $15.0 billion and is part of the technology sector. Shares are down 6.9% year-to-date as of the close of trading on Wednesday. Currently there are 4 analysts who rate Symantec a buy, 2 analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Symantec as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, attractive valuation levels, expanding profit margins, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Symantec 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.

1. As of noon trading, Splunk ( SPLK) is up $0.76 (1.5%) to $51.29 on average volume. Thus far, 2.2 million shares of Splunk exchanged hands as compared to its average daily volume of 4.5 million shares. The stock has ranged in price between $50.50-$51.69 after having opened the day at $50.95 as compared to the previous trading day's close of $50.53.

Splunk, Inc. provides software solutions that provide real-time operational intelligence in the United States and internationally. Splunk has a market cap of $5.8 billion and is part of the technology sector. Shares are down 26.4% year-to-date as of the close of trading on Wednesday. Currently there are 14 analysts who rate Splunk a buy, no analysts rate it a sell, and 5 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, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share. Get the full Splunk 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.

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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