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

BMC Software ( BMC) 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 down 0.5%. By the end of trading, BMC Software rose 57 cents (1.4%) to $40.28 on heavy volume. Throughout the day, 3.6 million shares of BMC Software exchanged hands as compared to its average daily volume of two million shares. The stock ranged in a price between $38.97-$40.68 after having opened the day at $38.97 as compared to the previous trading day's close of $39.71. Other companies within the Computer Software & Services industry that increased today were: Virtusa Corporation ( VRTU), up 17.1%, Kingtone Wirelessinfo Solution ( KONE), up 15.4%, Astea International ( ATEA), up 7.5%, and Glu Mobile ( GLUU), up 7.3%.

BMC Software, Inc. develops software that provides system and service management solutions for enterprises in the United States and internationally. The company operates in two segments, Enterprise Service Management and Mainframe Service Management. BMC Software has a market cap of $6.55 billion and is part of the technology sector. The company has a P/E ratio of 13.1, below the average computer software & services industry P/E ratio of 15.6 and below the S&P 500 P/E ratio of 17.7. Shares are up 21.1% year to date as of the close of trading on Wednesday. Currently there are seven analysts that rate BMC Software a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates BMC Software as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Wave Systems Corporation ( WAVX), down 10.1%, Salesforce.com ( CRM), down 9.1%, Netsol Technologies ( NTWK), down 8.9%, and Imperva ( IMPV), down 8.7%, were all losers within the computer software & services industry with VMWare ( VMW) 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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