VMWare Inc. (VMW): Today's Featured Technology 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.

VMWare ( VMW) pushed the Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day up 0.3%. By the end of trading, VMWare rose $1.36 (1.5%) to $92.51 on light volume. Throughout the day, 1.4 million shares of VMWare exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in a price between $91.10-$92.90 after having opened the day at $91.27 as compared to the previous trading day's close of $91.15. Other companies within the Technology sector that increased today were: BOS Better Online Solutions ( BOSC), up 40.5%, GigOptix ( GIG), up 26.1%, Performance Technologies ( PTIX), up 24.1%, and XRS ( XRSC), up 18.6%.
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VMware, Inc. provides virtualization and virtualization-based cloud infrastructure solutions in the United States and internationally. VMWare has a market cap of $11.72 billion and is part of the computer software & services industry. The company has a P/E ratio of 53.7, above the S&P 500 P/E ratio of 17.7. Shares are up 9.6% year to date as of the close of trading on Thursday. Currently there are 19 analysts that rate VMWare a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates VMWare as a buy. 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 expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Chyron Corporation ( CHYR), down 13.9%, Pactera Technology International ( PACT), down 13.4%, iGo ( IGOI), down 11.4%, and Demandware ( DWRE), down 10.3%, were all laggards within the technology sector with SanDisk ( SNDK) being today's technology sector laggard.

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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