VeriSign Inc. (VRSN): 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.

VeriSign ( VRSN) 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 down 0.4%. By the end of trading, VeriSign fell 78 cents (-1.6%) to $47 on average volume. Throughout the day, 1.8 million shares of VeriSign exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in price between $46.84-$47.78 after having opened the day at $47.66 as compared to the previous trading day's close of $47.78. Other companies within the Computer Software & Services industry that declined today were: Majesco Entertainment Company ( COOL), down 11.1%, Egain Communications Corporation ( EGAN), down 6.8%, KEYW ( KEYW), down 6.3%, and CounterPath Corporation ( CPAH), down 5.2%.
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VeriSign, Inc. provides Internet infrastructure services to various networks worldwide. It offers registry services that operate the authoritative directory of .com, .net, .cc, .tv, and .name domain names, as well as the back-end systems for various for all .gov, .jobs, and .edu domain names. VeriSign has a market cap of $7.51 billion and is part of the technology sector. The company has a P/E ratio of 33.1, above the average computer software & services industry P/E ratio of 31.4 and above the S&P 500 P/E ratio of 17.7. Shares are up 33.8% year to date as of the close of trading on Friday. Currently there are six analysts that rate VeriSign a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates VeriSign as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, revenue growth and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Glu Mobile ( GLUU), up 7.7%, Recon Technology ( RCON), up 6.4%, Smith Micro Software ( SMSI), up 5.8%, and BroadSoft ( BSFT), up 5.8%, were all gainers within the computer software & services industry with Catamaran ( CTRX) being today's featured computer software & services industry leader.

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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