Adobe Systems Inc (ADBE): Today's Featured Computer Software & Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Adobe Systems (ADBE) pushed the Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Adobe Systems fell $1.24 (-3.7%) to $32.26 on heavy volume. Throughout the day, 8.8 million shares of Adobe Systems exchanged hands as compared to its average daily volume of 3.9 million shares. The stock ranged in price between $31.83-$32.58 after having opened the day at $32.58 as compared to the previous trading day's close of $33.50. Other companies within the Computer Software & Services industry that declined today were: Autodesk (ADSK), down 15.6%, Optibase (OBAS), down 9.8%, icad (ICAD), down 8.6%, and Versant Corporation (VSNT), down 8.2%.

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Adobe Systems Incorporated operates as a diversified software company worldwide. It offers a line of software and services used by creative professionals, marketers, knowledge workers, application developers, enterprises, and consumers. Adobe Systems has a market cap of $16.06 billion and is part of the technology sector. The company has a P/E ratio of 21.8, above the average computer software & services industry P/E ratio of 20.9 and above the S&P 500 P/E ratio of 17.7. Shares are up 19.7% year to date as of the close of trading on Thursday. Currently there are nine analysts that rate Adobe Systems a buy, two analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Adobe Systems 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, reasonable valuation levels, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

• You can view the full Adobe Systems Ratings Report.

On the positive front, Kingtone Wirelessinfo Solution (KONE), up 15.8%, Computer Programs and Systems (CPSI), up 8.1%, Image Sensing Systems (ISNS), up 8%, and Wizzard Software Corporation (WZE), up 7.1%, were all gainers within the computer software & services industry with Microsoft Corporation (MSFT) being today's featured computer software & services industry leader.

• 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 Adobe Systems Inc click any of the following:

• Adobe Systems Inc Stock Price

• Adobe Systems Inc Analyst Ratings

• Adobe Systems Inc Key Stats & Profile

• Adobe Systems Inc Earnings

• Adobe Systems Inc Ratio Comparison

• Adobe Systems Inc Growth Rates

• Adobe Systems Inc Balance Sheet

• Adobe Systems Inc Cash Flow

• Adobe Systems Inc Income Statement