3 Stocks Pushing The Computer Software & Services Industry Lower

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The Computer Software & Services industry as a whole closed the day down 1.9% versus the S&P 500, which was down 0.7%. Laggards within the Computer Software & Services industry included TigerLogic ( TIGR), down 5.7%, Formula Systems (1985 ( FORTY), down 4.2%, MGT Capital Investments ( MGT), down 2.4%, QAD ( QADB), down 2.9% and PAR Technology ( PAR), down 2.4%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Wipro ( WIT) is one of the companies that pushed the Computer Software & Services industry lower today. Wipro was down $0.22 (1.8%) to $12.10 on light volume. Throughout the day, 376,424 shares of Wipro exchanged hands as compared to its average daily volume of 695,000 shares. The stock ranged in price between $12.06-$12.14 after having opened the day at $12.14 as compared to the previous trading day's close of $12.32.

Wipro Limited provides information technology (IT) products and services worldwide. It operates in two segments, IT Services and IT Products. Wipro has a market cap of $30.1 billion and is part of the technology sector. Shares are down 2.1% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Wipro a buy, 1 analyst rates it a sell, and 5 rate it a hold.

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TheStreet Ratings rates Wipro as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, increase in net income and reasonable valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from TheStreet Ratings analysis on WIT go as follows:

  • The revenue growth greatly exceeded the industry average of 16.1%. Since the same quarter one year prior, revenues rose by 17.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • WIT's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, WIT has a quick ratio of 2.06, which demonstrates the ability of the company to cover short-term liquidity needs.
  • WIPRO LTD has improved earnings per share by 49.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WIPRO LTD increased its bottom line by earning $0.53 versus $0.41 in the prior year. This year, the market expects an improvement in earnings ($0.57 versus $0.53).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the IT Services industry average, but is less than that of the S&P 500. The net income increased by 23.9% when compared to the same quarter one year prior, going from $322.65 million to $399.85 million.

You can view the full analysis from the report here: Wipro Ratings Report

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