TIBCO Software Inc. (TIBX): Today's Featured Technology 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.

TIBCO Software ( TIBX) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.2%. By the end of trading, TIBCO Software fell 26 cents (-1%) to $24.72 on light volume. Throughout the day, 1.8 million shares of TIBCO Software exchanged hands as compared to its average daily volume of 2.6 million shares. The stock ranged in price between $24.30-$24.96 after having opened the day at $24.96 as compared to the previous trading day's close of $24.98. Other companies within the Technology sector that declined today were: Exa ( EXA), down 20%, BOS Better Online Solutions ( BOSC), down 20%, Inteliquent ( IQNT), down 13.4%, and Warwick Valley Telephone Company ( WVT), down 12.6%.
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TIBCO Software Inc. provides middleware and infrastructure software worldwide. It offers products in the areas of service-oriented architecture (SOA) and core infrastructure; business optimization; and process automation and collaboration. TIBCO Software has a market cap of $4.1 billion and is part of the computer software & services industry. The company has a P/E ratio of 34.3, above the S&P 500 P/E ratio of 17.7. Shares are up 4.5% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate TIBCO Software a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates TIBCO Software as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Superconductor Technologies ( SCON), up 19.3%, Revolution Lighting Technologies ( RVLT), up 13.3%, Inphi ( IPHI), up 11.8%, and OCZ Technology Group ( OCZ), up 9.6%, were all gainers within the technology sector with Seagate Technology ( STX) being today's featured technology sector leader.

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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