Dell Inc (DELL): 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.

Dell ( DELL) pushed the Computer Hardware industry lower today making it today's featured Computer Hardware laggard. The industry as a whole closed the day down 0.6%. By the end of trading, Dell fell 24 cents (-2.5%) to $9.35 on average volume. Throughout the day, 16.2 million shares of Dell exchanged hands as compared to its average daily volume of 19.4 million shares. The stock ranged in price between $9.31-$9.50 after having opened the day at $9.48 as compared to the previous trading day's close of $9.59. Other companies within the Computer Hardware industry that declined today were: iGo ( IGOI), down 6.8%, Dataram Corporation ( DRAM), down 6.6%, Digital Generation ( DGIT), down 5.1%, and Lantronix ( LTRX), down 4.2%.
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Dell Inc. provides integrated technology solutions in the information technology (IT) industry worldwide. Dell has a market cap of $16.57 billion and is part of the technology sector. The company has a P/E ratio of 5.7, equal to the average computer hardware industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 34.7% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Dell a buy, one analyst rates it a sell, and 14 rate it a hold.

TheStreet Ratings rates Dell as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow.

On the positive front, OCZ Technology Group ( OCZ), up 9.5%, Performance Technologies ( PTIX), up 8.9%, Mercury Computer Systems ( MRCY), up 4.1%, and Radcom ( RDCM), up 3.9%, were all gainers within the computer hardware industry with Lexmark International ( LXK) being today's featured computer hardware industry leader.

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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