BMC Software Inc. (BMC): Today's Featured Technology Laggard

BMC Software ( BMC) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.3%. By the end of trading, BMC Software fell $1.79 (-4.5%) to $37.81 on average volume. Throughout the day, 3.1 million shares of BMC Software exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in price between $35.48-$37.96 after having opened the day at $36.94 as compared to the previous trading day's close of $39.60. Other company's within the Technology sector that declined today were: ServiceSource International ( SREV), down 27.9%, Digital River ( DRIV), down 25.6%, Faro Technologies ( FARO), down 21.6%, and Chyron Corporation ( CHYR), down 16%.

BMC Software, Inc. develops software that provides system and service management solutions for enterprises in the United States and internationally. BMC Software has a market cap of $6.29 billion and is part of the computer software & services industry. The company has a P/E ratio of 17, equal to the average computer software & services industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 20.6% year to date as of the close of trading on Tuesday. Currently there are six 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 revenue growth, notable return on equity, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Hauppauge Digital ( HAUP), up 33.6%, Silicon Image ( SIMG), up 24.5%, Wizzard Software Corporation ( WZE), up 21.4%, and MeetMe ( MEET), up 16.4%, were all gainers within the technology sector with Infosys ( INFY) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).
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