Adobe Systems Inc (ADBE): Today's Featured Computer Software & Services Winner

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.

Adobe Systems ( ADBE) pushed the Computer Software & Services industry higher today making it today's featured computer software & services winner. The industry as a whole closed the day down 0.1%. By the end of trading, Adobe Systems rose 52 cents (1.5%) to $34.61 on average volume. Throughout the day, 4.7 million shares of Adobe Systems exchanged hands as compared to its average daily volume of four million shares. The stock ranged in a price between $33.85-$34.81 after having opened the day at $34.19 as compared to the previous trading day's close of $34.09. Other companies within the Computer Software & Services industry that increased today were: Kingtone Wirelessinfo Solution ( KONE), up 12.9%, Astea International ( ATEA), up 9.3%, Helios & Matheson Information Technology In ( HMNY), up 7.7%, and Active Network ( ACTV), up 6.1%.
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Adobe Systems Incorporated operates as a diversified software company worldwide. It offers a line of software and services used by creative professionals, marketers, knowledge workers, application developers, enterprises, and consumers. Adobe Systems has a market cap of $16.77 billion and is part of the technology sector. The company has a P/E ratio of 21.6, above the S&P 500 P/E ratio of 17.7. Shares are up 19.8% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Adobe Systems a buy, two analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Adobe Systems 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, reasonable valuation levels, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, BOS Better Online Solutions ( BOSC), down 19.9%, VeriSign ( VRSN), down 13.2%, Allscripts-Misys Healthcare Solutions ( MDRX), down 10.5%, and icad ( ICAD), down 7.2%, were all laggards within the computer software & services industry with Microsoft Corporation ( MSFT) being today's computer software & services industry laggard.

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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