Informatica Corporation (INFA): 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.

Informatica Corporation ( INFA) 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 0.2%. By the end of trading, Informatica Corporation rose $1.83 (7.1%) to $27.52 on heavy volume. Throughout the day, 4.5 million shares of Informatica Corporation exchanged hands as compared to its average daily volume of 2.5 million shares. The stock ranged in a price between $25.81-$27.85 after having opened the day at $25.86 as compared to the previous trading day's close of $25.69. Other companies within the Computer Software & Services industry that increased today were: THQ ( THQI), up 9.4%, Helios & Matheson Information Technology In ( HMNY), up 9.2%, icad ( ICAD), up 8.3%, and DynaVox ( DVOX), up 8%.
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Informatica Corporation provides enterprise data integration and data quality software and services worldwide. Informatica Corporation has a market cap of $2.72 billion and is part of the technology sector. The company has a P/E ratio of 27.2, above the S&P 500 P/E ratio of 17.7. Shares are down 31.6% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Informatica Corporation a buy, one analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Informatica Corporation as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

On the negative front, Authentidate Holding Corporation ( ADAT), down 13.1%, Pactera Technology International ( PACT), down 12.7%, Procera Networks ( PKT), down 6.5%, and Majesco Entertainment Company ( COOL), down 6.1%, were all laggards within the computer software & services industry with Symantec ( SYMC) 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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