VMWare Inc. (VMW): Today's Featured Computer Software & Services 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.

VMWare ( VMW) pushed the Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole closed the day up 0.1%. By the end of trading, VMWare fell $1.19 (-1.3%) to $92.02 on light volume. Throughout the day, 1.3 million shares of VMWare exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in price between $91.16-$93.24 after having opened the day at $92.80 as compared to the previous trading day's close of $93.21. Other companies within the Computer Software & Services industry that declined today were: inContact ( SAAS), down 6.9%, Syntel ( SYNT), down 6.6%, NCI ( NCIT), down 6.2%, and Market Leader ( LEDR), down 5.8%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

VMware, Inc. provides virtualization and virtualization-based cloud infrastructure solutions in the United States and internationally. VMWare has a market cap of $11.75 billion and is part of the technology sector. The company has a P/E ratio of 53.8, above the S&P 500 P/E ratio of 17.7. Shares are down 1% year to date as of the close of trading on Friday. 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, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Kingtone Wirelessinfo Solution ( KONE), up 19.6%, Vringo ( VRNG), up 9.3%, Mitek Systems ( MITK), up 7.7%, and E2open ( EOPN), up 7%, were all gainers within the computer software & services industry with Infosys ( INFY) being today's featured computer software & services industry leader.

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).

HOLIDAY SPECIAL: Let Jim Cramer show you every trade he is making in his $2.5 Million portfolio. Join now for 14-days FREE. Sign up today to get e-mail alerts before every trade.

null

More from Markets

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Legal Weed Sales in California Are Off to a Less Than Smokin' Start

Legal Weed Sales in California Are Off to a Less Than Smokin' Start

Owner of Moviepass Sees Stock Plummet

Owner of Moviepass Sees Stock Plummet

Ford, GM Gain as China Slashes Auto Import Tariffs

Ford, GM Gain as China Slashes Auto Import Tariffs

U.S. Crude Oil Hits Fresh 3-Year Highs as Gasoline Heads to $3 a Gallon

U.S. Crude Oil Hits Fresh 3-Year Highs as Gasoline Heads to $3 a Gallon