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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 29 points (-0.2%) at 16,877 as of Thursday, June 19, 2014, 1:00 PM ET. The NYSE advances/declines ratio sits at 1,663 issues advancing vs. 1,297 declining with 187 unchanged.

The Computer Software & Services industry currently sits down 0.3% versus the S&P 500, which is down 0.1%. On the negative front, top decliners within the industry include China Mobile Games and Entertainment Group ( CMGE), down 24.6%, Xerox Corporation ( XRX), down 1.9% and Cerner ( CERN), down 1.0%.

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

3. Cognizant Technology Solutions ( CTSH) is one of the companies pushing the Computer Software & Services industry lower today. As of noon trading, Cognizant Technology Solutions is down $0.24 (-0.5%) to $48.76 on light volume. Thus far, 931,661 shares of Cognizant Technology Solutions exchanged hands as compared to its average daily volume of 3.8 million shares. The stock has ranged in price between $48.67-$49.24 after having opened the day at $49.22 as compared to the previous trading day's close of $49.00.

Cognizant Technology Solutions Corporation provides information technology (IT), consulting, and business process services worldwide. The company operates in four segments: Financial Services, Healthcare, Manufacturing/Retail/Logistics, and Other. Cognizant Technology Solutions has a market cap of $29.5 billion and is part of the technology sector. Shares are down 3.0% year-to-date as of the close of trading on Wednesday. Currently there are 13 analysts that rate Cognizant Technology Solutions a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Cognizant Technology Solutions as a buy. 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, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Cognizant Technology Solutions 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, Adobe Systems ( ADBE) is down $0.68 (-0.9%) to $72.40 on average volume. Thus far, 2.4 million shares of Adobe Systems exchanged hands as compared to its average daily volume of 3.6 million shares. The stock has ranged in price between $72.35-$73.57 after having opened the day at $73.17 as compared to the previous trading day's close of $73.08.

Adobe Systems Incorporated operates as a diversified software company worldwide. It operates in three segments: Digital Media, Digital Marketing, and Print and Publishing. Adobe Systems has a market cap of $33.6 billion and is part of the technology sector. Shares are up 22.1% year-to-date as of the close of trading on Wednesday. Currently there are 11 analysts that rate Adobe Systems a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Adobe Systems as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow. Get the full Adobe Systems 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, Qihoo 360 Technology ( QIHU) is down $1.48 (-1.6%) to $90.08 on light volume. Thus far, 717,033 shares of Qihoo 360 Technology exchanged hands as compared to its average daily volume of 3.4 million shares. The stock has ranged in price between $89.21-$92.04 after having opened the day at $91.57 as compared to the previous trading day's close of $91.56.

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 $11.4 billion and is part of the technology sector. Shares are up 11.6% year-to-date as of the close of trading on Wednesday. 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 buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. 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.

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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