NetApp Inc. (NTAP): 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.

NetApp ( NTAP) 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, NetApp rose 75 cents (2.2%) to $35.47 on average volume. Throughout the day, 7.1 million shares of NetApp exchanged hands as compared to its average daily volume of 5.9 million shares. The stock ranged in a price between $34.78-$35.62 after having opened the day at $35 as compared to the previous trading day's close of $34.72. Other companies within the Technology sector that increased today were: Revolution Lighting Technologies ( RVLT), up 31.4%, Travelzoo ( TZOO), up 24.3%, Dataram Corporation ( DRAM), up 15.5%, and Giga-tronics ( GIGA), up 13.5%.
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NetApp, Inc. engages in design, manufacture, marketing, and technical support of networked storage solutions. The company supply enterprise storage and data management software, and hardware products and services. NetApp has a market cap of $12.46 billion and is part of the computer hardware industry. The company has a P/E ratio of 27.4, above the S&P 500 P/E ratio of 17.7. Shares are up 2.4% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate NetApp a buy, one analyst rates it a sell, and 19 rate it a hold.

TheStreet Ratings rates NetApp as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. 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, Apple ( AAPL), down 12.3%, BTU International ( BTUI), down 10.9%, Cirrus Logic ( CRUS), down 10.8%, and eOn Communications Corporation ( EONC), down 10.4%, were all laggards within the technology sector with Altera ( ALTR) 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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