Brocade Communications Systems Inc (BRCD): Today's Featured Computer Hardware Loser

Brocade Communications Systems ( BRCD) pushed the Computer Hardware industry lower today making it today's featured Computer Hardware loser. The industry as a whole closed the day up 1.5%. By the end of trading, Brocade Communications Systems fell 10 cents (-2.2%) to $4.41 on heavy volume. Throughout the day, 12.6 million shares of Brocade Communications Systems exchanged hands as compared to its average daily volume of 5.1 million shares. The stock ranged in price between $4.18-$4.48 after having opened the day at $4.30 as compared to the previous trading day's close of $4.51. Other company's within the Computer Hardware industry that declined today were: Lantronix ( LTRX), down 6.1%, Network Equipment Technologies ( NWK), down 4.9%, Socket Mobile ( SCKT), down 4.2%, and SMART Technologies ( SMT), down 3.5%.

Brocade Communications Systems, Inc. engages in the supply of Internet protocol based Ethernet networking solutions and storage area networking (SAN) solutions. Brocade Communications Systems has a market cap of $2.05 billion and is part of the technology sector. The company has a P/E ratio of 22.3, below the average computer hardware industry P/E ratio of 23.5 and above the S&P 500 P/E ratio of 17.7. Shares are down 14.1% year to date as of the close of trading on Monday. Currently there are five analysts that rate Brocade Communications Systems a buy, two analysts rate it a sell, and 20 rate it a hold.

TheStreet Ratings rates Brocade Communications Systems as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity.

On the positive front, Dataram Corporation ( DRAM), up 10.2%, Hauppauge Digital ( HAUP), up 7.8%, Universal Display Corporation ( PANL), up 6.9%, and Emulex Corporation ( ELX), up 6.5%, were all gainers within the computer hardware industry with Seagate Technology ( STX) being today's featured computer hardware industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer hardware industry could consider iShares Dow Jones US Technology ( IYW) while those bearish on the computer hardware industry could consider ProShares Ultra Short Semiconductor ( SSG).
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