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TheStreet Wire

VMWare Inc. (VMW): Today's Featured Computer Software & Services Winner

By TheStreet Wire 07/18/12 - 05:00 PM EDT

Find out if (VMW) is in Cramer's Portfolio.

VMWare (VMW) pushed the Computer Software & Services industry higher today making it today's featured computer software & services winner. The industry as a whole closed the day up 0.9%. By the end of trading, VMWare rose $9.72 (12.1%) to $90.01 on heavy volume. Throughout the day, 6.7 million shares of VMWare exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in a price between $85.32-$90.81 after having opened the day at $85.70 as compared to the previous trading day's close of $80.29. Other companies within the Computer Software & Services industry that increased today were: Fortinet (FTNT), up 10.4%, TIBCO Software (TIBX), up 8.4%, Deltek (PROJ), up 8.2%, and Intelligent Systems (INS), up 8.1%.

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VMware, Inc. provides virtualization and virtualization-based cloud infrastructure solutions in the United States and internationally. VMWare has a market cap of $10.86 billion and is part of the technology sector. The company has a P/E ratio of 46.7, equal to the average computer software & services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 1.5% year to date as of the close of trading on Tuesday. Currently there are 18 analysts that rate VMWare a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates VMWare 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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full VMWare Ratings Report.

Use our computer software & services section to find industry-relevant news.
Or find some new ideas from our top rated stocks lists.

For investors not wanting singular stock exposure, 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).

Find other investment ideas from our top rated ETFs lists.

For more information on VMWare Inc. click any of the following:

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