Teradata Corporation (TDC): Today's Featured Computer Hardware 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.

Teradata Corporation ( TDC) pushed the Computer Hardware industry lower today making it today's featured Computer Hardware laggard. The industry as a whole was unchanged today. By the end of trading, Teradata Corporation fell 73 cents (-1%) to $71.56 on light volume. Throughout the day, one million shares of Teradata Corporation exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in price between $71.21-$72.49 after having opened the day at $71.98 as compared to the previous trading day's close of $72.29. Other companies within the Computer Hardware industry that declined today were: Interphase ( INPH), down 12.4%, Dataram Corporation ( DRAM), down 5.1%, Concurrent Computer Corporation ( CCUR), down 4.6%, and Radcom ( RDCM), down 4.3%.
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Teradata Corporation provides analytic data solutions worldwide. The company offers various data warehousing solutions that comprise software, hardware, and related business consulting and support services. Teradata Corporation has a market cap of $12.46 billion and is part of the technology sector. The company has a P/E ratio of 32.8, above the average computer hardware industry P/E ratio of 32.7 and above the S&P 500 P/E ratio of 17.7. Shares are up 49% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Teradata Corporation a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Teradata Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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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