Informatica Corporation (INFA): Today's Featured Computer Software & Services Winner

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.

Informatica Corporation ( INFA) 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 0.8%. By the end of trading, Informatica Corporation rose 46 cents (1.4%) to $34.18 on average volume. Throughout the day, 2.1 million shares of Informatica Corporation exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in a price between $33.06-$34.43 after having opened the day at $33.69 as compared to the previous trading day's close of $33.72. Other companies within the Computer Software & Services industry that increased today were: Wireless Ronin Technologies ( RNIN), up 7.1%, Chyron Corporation ( CHYR), up 4.8%, FalconStor Software ( FALC), up 4.8%, and Eloqua ( ELOQ), up 4.4%.
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Informatica Corporation provides enterprise data integration and data quality software and services worldwide. Informatica Corporation has a market cap of $3.82 billion and is part of the technology sector. The company has a P/E ratio of 34.2, above the average computer software & services industry P/E ratio of 33.9 and above the S&P 500 P/E ratio of 17.7. Shares are down 8.7% year to date as of the close of trading on Tuesday. Currently there are 13 analysts that rate Informatica Corporation a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates Informatica Corporation as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

On the negative front, Helios & Matheson Information Technology In ( HMNY), down 13%, Mitek Systems ( MITK), down 11.6%, Top Image Systems ( TISA), down 8.3%, and DynaVox ( DVOX), down 7.2%, were all laggards within the computer software & services industry with Salesforce.com ( CRM) being today's computer software & services industry laggard.

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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