TIBCO Software Inc. (TIBX): Today's Featured Technology 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.

TIBCO Software ( TIBX) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.5%. By the end of trading, TIBCO Software fell 71 cents (-2.4%) to $28.99 on average volume. Throughout the day, 4.1 million shares of TIBCO Software exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in price between $28.16-$29.52 after having opened the day at $28.75 as compared to the previous trading day's close of $29.70. Other companies within the Technology sector that declined today were: Informatica Corporation ( INFA), down 22.6%, China Mobile Games and Entertainment Group ( CMGE), down 16%, Aetrium Incorporated ( ATRM), down 9.3%, and O2Micro International Ltd. ADR ( OIIM), down 6.3%.
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TIBCO Software Inc. provides middleware and infrastructure software worldwide. It offers products in the areas of service-oriented architecture (SOA) and core infrastructure; business optimization; and process automation and collaboration. TIBCO Software has a market cap of $4.85 billion and is part of the computer software & services industry. The company has a P/E ratio of 41.6, above the average computer software & services industry P/E ratio of 41 and above the S&P 500 P/E ratio of 17.7. Shares are up 24.2% year to date as of the close of trading on Wednesday. Currently there are 13 analysts that rate TIBCO Software a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates TIBCO Software as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, CollabRx ( CLRX), up 38%, Vringo ( VRNG), up 22.1%, e-Future Information Technology ( EFUT), up 21.3%, and Kingtone Wirelessinfo Solution ( KONE), up 19.1%, were all gainers within the technology sector with Siemens ( SI) 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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