VeriSign Inc. (VRSN): 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.

VeriSign ( VRSN) 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 up 0.3%. By the end of trading, VeriSign rose $1.15 (3.1%) to $38.08 on light volume. Throughout the day, 3.1 million shares of VeriSign exchanged hands as compared to its average daily volume of 4.6 million shares. The stock ranged in a price between $37.27-$38.14 after having opened the day at $37.50 as compared to the previous trading day's close of $36.93. Other companies within the Computer Software & Services industry that increased today were: DynaVox ( DVOX), up 13%, Wireless Ronin Technologies ( RNIN), up 9%, Velti ( VELT), up 7.7%, and GRAVITY ( GRVY), up 6.5%.
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VeriSign, Inc. provides Internet infrastructure services to various networks worldwide. It offers registry services that operate the authoritative directory of .com, .net, .cc, .tv, and .name domain names, as well as the back-end systems for various for all .gov, .jobs, and .edu domain names. VeriSign has a market cap of $5.63 billion and is part of the technology sector. The company has a P/E ratio of 23.2, above the S&P 500 P/E ratio of 17.7. Shares are up 1.5% year to date as of the close of trading on Tuesday. Currently there are three analysts that rate VeriSign a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates VeriSign as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income, revenue growth and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, China Mobile Games and Entertainment Group ( CMGE), down 18%, Webmedia Brands ( WEBM), down 4.5%, Take-Two Interactive Software ( TTWO), down 4.4%, and Chyron Corporation ( CHYR), down 4.3%, were all laggards within the computer software & services industry with Catamaran ( CTRX) 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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