Aruba Networks Inc. (ARUN): 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.

Aruba Networks ( ARUN) pushed the Computer Hardware industry lower today making it today's featured Computer Hardware laggard. The industry as a whole closed the day up 2.4%. By the end of trading, Aruba Networks fell 31 cents (-1.6%) to $18.52 on heavy volume. Throughout the day, 5.2 million shares of Aruba Networks exchanged hands as compared to its average daily volume of 3.1 million shares. The stock ranged in price between $17.85-$19.04 after having opened the day at $18.12 as compared to the previous trading day's close of $18.83. Other companies within the Computer Hardware industry that declined today were: Performance Technologies ( PTIX), down 7.1%, Radcom ( RDCM), down 6.3%, Radisys Corporation ( RSYS), down 4.3%, and Identive Group ( INVE), down 3.1%.
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Aruba Networks, Inc. provides network access solutions for the mobile enterprises worldwide. Aruba Networks has a market cap of $2.21 billion and is part of the technology sector. The company has a P/E ratio of -486.5, below the S&P 500 P/E ratio of 17.7. Shares are up 1.7% year to date as of the close of trading on Friday. Currently there are 14 analysts that rate Aruba Networks a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Aruba Networks as a hold. 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

On the positive front, XRS ( XRSC), up 20%, Xplore Technologies Corporation Class A ( XPLR), up 16.2%, Xplore Technologies Corporation Class A ( XLRT), up 16.2%, and Mitek Systems ( MITK), up 8.1%, were all gainers within the computer hardware industry with EMC Corporation ( EMC) 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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