Dell Inc (DELL): 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.

Dell ( DELL) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.4%. By the end of trading, Dell fell 29 cents (-2.6%) to $10.77 on light volume. Throughout the day, 16.2 million shares of Dell exchanged hands as compared to its average daily volume of 22.1 million shares. The stock ranged in price between $10.71-$11.09 after having opened the day at $11.07 as compared to the previous trading day's close of $11.06. Other companies within the Technology sector that declined today were: Uni-pixel ( UNXL), down 12%, Vringo ( VRNG), down 9.1%, Alcatel-Lucent ( ALU), down 8.7%, and Cypress Semiconductor Corporation ( CY), down 8.4%.
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Dell Inc. provides integrated technology solutions in the information technology (IT) industry worldwide. Dell has a market cap of $19.06 billion and is part of the computer hardware industry. The company has a P/E ratio of 7.5, below the S&P 500 P/E ratio of 17.7. Shares are up 8.2% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Dell a buy, one analyst rates it a sell, and 14 rate it a hold.

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

On the positive front, Perion Network ( PERI), up 20.1%, Suntech Power Holdings ( STP), up 12.2%, Parametric Sound ( PAMT), up 11.9%, and Actions Semiconductor ( ACTS), up 11.1%, were all gainers within the technology sector with Cirrus Logic ( CRUS) 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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