Stratasys (SSYS): Today's Featured Computer Hardware 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.

Stratasys ( SSYS) pushed the Computer Hardware industry higher today making it today's featured computer hardware winner. The industry as a whole closed the day up 0.1%. By the end of trading, Stratasys rose $3.65 (6.5%) to $60.20 on heavy volume. Throughout the day, 1.1 million shares of Stratasys exchanged hands as compared to its average daily volume of 627,500 shares. The stock ranged in a price between $58-$61.32 after having opened the day at $58.30 as compared to the previous trading day's close of $56.55. Other companies within the Computer Hardware industry that increased today were: XRS ( XRSC), up 23.6%, Dataram Corporation ( DRAM), up 10.1%, Identive Group ( INVE), up 6.5%, and Palo Alto Networks ( PANW), up 6.2%.
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Stratasys, Inc., together with its subsidiaries, engages in the development, manufacture, marketing, and servicing of three-dimensional (3D) printers, rapid prototyping (RP) systems, and related consumable materials for office-based RP and direct digital manufacturing (DDM) markets. Stratasys has a market cap of $1.17 billion and is part of the technology sector. The company has a P/E ratio of 61.4, equal to the average computer hardware industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 79.7% year to date as of the close of trading on Tuesday. Currently there is one analyst that rates Stratasys a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Stratasys as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Xyratex ( XRTX), down 16.7%, Hewlett-Packard ( HPQ), down 13%, Radisys Corporation ( RSYS), down 6%, and Dell ( DELL), down 4.8%, were all laggards within the computer hardware industry with Western Digital Corporation ( WDC) being today's computer hardware industry laggard.

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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