Stick With These Software Stocks

A tech-sector scare has led to a software sell-off, but S&P thinks these firms can weather the downturn

By Jonathan Rudy

The market saw a sell-off in software stocks Wednesday, Mar. 28, reflecting continued earnings warnings from the tech sector.

Standard & Poor's is keeping its recommendations on select software stocks, although these shares are down about 15% on average on Wednesday.

While no company is immune from a global economic slowdown, S&P continues to believe that Rational Software (RATL ), ranked 5 STARS (buy), and Check Point Software (CHKP ), ranked 4 STARS (accumulate), are better positioned and more attractively valued than others.

S&P has a 3 STARS (hold) opinion on shares of Siebel Systems (SEBL ), i2 Technologies (ITWO ) and Veritas Software (VRTS ).

Rudy is a software industry analyst for Standard & Poor's

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