NetApp Inc. (NTAP): 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.

NetApp ( NTAP) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.8%. By the end of trading, NetApp fell 90 cents (-3%) to $29.31 on average volume. Throughout the day, 9.4 million shares of NetApp exchanged hands as compared to its average daily volume of 6.6 million shares. The stock ranged in price between $29.22-$30.08 after having opened the day at $30.03 as compared to the previous trading day's close of $30.21. Other companies within the Technology sector that declined today were: OCZ Technology Group ( OCZ), down 40.3%, BOS Better Online Solutions ( BOSC), down 24%, Kingtone Wirelessinfo Solution ( KONE), down 17.6%, and Dataram Corporation ( DRAM), down 13.3%.
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NetApp, Inc. engages in design, manufacture, marketing, and technical support of networked storage solutions. The company supply enterprise storage and data management software, and hardware products and services. NetApp has a market cap of $11.09 billion and is part of the computer hardware industry. The company has a P/E ratio of 21.6, equal to the average computer hardware industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are down 16.7% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate NetApp a buy, no analysts rate it a sell, and 18 rate it a hold.

TheStreet Ratings rates NetApp as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Bridgeline Digital ( BLIN), up 15.2%, Zoom Technologies ( ZOOM), up 12.4%, Nexxus Lighting ( NEXS), up 10.2%, and Top Image Systems ( TISA), up 7%, were all gainers within the technology sector with Crown Castle International ( CCI) 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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