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

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 0.6%. By the end of trading, VMWare rose $4.23 (4%) to $110.92 on average volume. Throughout the day, 2.2 million shares of VMWare exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in a price between $106.73-$111.40 after having opened the day at $106.89 as compared to the previous trading day's close of $106.69. Other companies within the Computer Software & Services industry that increased today were: Recon Technology ( RCON), up 21.4%, SolarWinds ( SWI), up 20%, Citrix Systems ( CTXS), up 12.4%, and Parametric Technology Corporation ( PMTC), up 10.2%.

VMware, Inc. provides virtualization and virtualization-based cloud infrastructure solutions in the United States and internationally. VMWare has a market cap of $12.99 billion and is part of the technology sector. The company has a P/E ratio of 55.6, below the average computer software & services industry P/E ratio of 56.5 and above the S&P 500 P/E ratio of 17.7. Shares are up 24.4% year to date as of the close of trading on Wednesday. Currently there are 18 analysts that rate VMWare a buy, no analysts rate it a sell, and 11 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 solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, Vasco Data Security International ( VDSI), down 22.1%, Innovative Solutions & Support ( ISSC), down 13.8%, Vringo ( VRNG), down 8.2%, and Morningstar ( MORN), down 7.5%, were all losers within the computer software & services industry with Check Point Software Technologies ( CHKP) being today's computer software & services industry loser.

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).
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