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.
SolarWinds (
SWI) pushed the Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day down 0.8%. By the end of trading, SolarWinds rose 71 cents (1.4%) to $52.60 on average volume. Throughout the day, 918,904 shares of SolarWinds exchanged hands as compared to its average daily volume of 904,300 shares. The stock ranged in a price between $50.39-$53.19 after having opened the day at $51.13 as compared to the previous trading day's close of $51.89. Other companies within the Technology sector that increased today were:
Deltathree (
DDDC), up 15%,
Immersion Corporation (
IMMR), up 12.9%,
Sapiens International Corporation (
SPNS), up 9.2%, and
China TechFaith Wireless Comm Tech (
CNTF), up 8.5%.
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SolarWinds, Inc. designs, develops, markets, sells, and supports enterprise information technology (IT) infrastructure management software for IT professionals in various organizations in the United States and internationally. SolarWinds has a market cap of $3.86 billion and is part of the computer software & services industry. The company has a P/E ratio of 51.8, above the S&P 500 P/E ratio of 17.7. Shares are up 85.4% year to date as of the close of trading on Monday. Currently there are seven analysts that rate SolarWinds a buy, one analyst rates it a sell, and five rate it a hold.
TheStreet Ratings rates SolarWinds as a
buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, good cash flow from operations and growth in earnings per share. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
On the negative front,
Meade Instruments Corporation (
MEAD), down 14.3%,
NII Holdings (
NIHD), down 11.3%,
Wireless Ronin Technologies (
RNIN), down 11.3%, and
Trina Solar (
TSL), down 11%, were all laggards within the technology sector with
Infosys (
INFY) being today's technology sector laggard.
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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