Bally Technologies Inc. (BYI): 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.

Bally Technologies ( BYI) 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 0.6%. By the end of trading, Bally Technologies rose 55 cents (1.2%) to $48.14 on light volume. Throughout the day, 397,099 shares of Bally Technologies exchanged hands as compared to its average daily volume of 749,000 shares. The stock ranged in a price between $47.48-$48.35 after having opened the day at $47.48 as compared to the previous trading day's close of $47.59. Other companies within the Computer Software & Services industry that increased today were: TSR ( TSRI), up 22.3%, Workday ( WDAY), up 6.2%, Asiainfo-Linkage ( ASIA), up 6%, and e-Future Information Technology ( EFUT), up 5.8%.
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Bally Technologies, Inc., a gaming company, engages in the design, manufacture, operation, and distribution of technology-based gaming devices, systems, server-based solutions, custom mobile applications, and interactive applications. Bally Technologies has a market cap of $1.93 billion and is part of the technology sector. The company has a P/E ratio of 20.4, equal to the average computer software & services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 20.3% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Bally Technologies a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Bally Technologies as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Fortinet ( FTNT), down 18.8%, Check Point Software Technologies ( CHKP), down 13.2%, Sourcefire ( FIRE), down 11.8%, and Optibase ( OBAS), down 11.6%, 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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