Salesforce.com Inc. (CRM): Today's Featured Computer Software & Services 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.

Salesforce.com ( CRM) pushed the Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole closed the day down 0.4%. By the end of trading, Salesforce.com fell $3.85 (-2.4%) to $156.37 on heavy volume. Throughout the day, three million shares of Salesforce.com exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in price between $156.14-$159.25 after having opened the day at $157.42 as compared to the previous trading day's close of $160.22. Other companies within the Computer Software & Services industry that declined today were: Astea International ( ATEA), down 12.9%, China Digital TV ( STV), down 11.9%, Bridgeline Digital ( BLIN), down 10.7%, and DynaVox ( DVOX), down 9.6%.
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salesforce.com, inc provides cloud computing and social enterprise solutions to various businesses and industries worldwide. The company delivers customer relationship management applications through Internet or cloud. Salesforce.com has a market cap of $22.39 billion and is part of the technology sector. The company has a P/E ratio of -224.6, below the S&P 500 P/E ratio of 17.7. Shares are up 57.9% year to date as of the close of trading on Monday. Currently there are 28 analysts that rate Salesforce.com a buy, two analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Salesforce.com as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

On the positive front, Kingtone Wirelessinfo Solution ( KONE), up 40.6%, BroadSoft ( BSFT), up 8%, NQ Mobile ( NQ), up 7.2%, and ServiceSource International ( SREV), up 6%, were all gainers within the computer software & services industry with International Game Technology ( IGT) being today's featured computer software & services industry leader.

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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