VeriSign Inc. (VRSN): 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.

VeriSign ( VRSN) pushed the Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day up 0.5%. By the end of trading, VeriSign rose $2.97 (7.4%) to $42.96 on heavy volume. Throughout the day, 8.7 million shares of VeriSign exchanged hands as compared to its average daily volume of five million shares. The stock ranged in a price between $40.63-$43.37 after having opened the day at $40.98 as compared to the previous trading day's close of $39.99. Other companies within the Technology sector that increased today were: Cimatron ( CIMT), up 19.1%, OCZ Technology Group ( OCZ), up 18.3%, Revolution Lighting Technologies ( RVLT), up 15.2%, and BTU International ( BTUI), up 14%.
  • 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.

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 $6.19 billion and is part of the computer software & services industry. The company has a P/E ratio of 25.6, above the S&P 500 P/E ratio of 17.7. Shares are up 2.3% year to date as of the close of trading on Thursday. Currently there are three analysts that rate VeriSign a buy, one analyst rates it a sell, and eight 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, ScanSource ( SCSC), down 14.5%, ModusLink Global Solutions ( MLNK), down 11.2%, Hutchinson Technology ( HTCH), down 11.1%, and Dataram Corporation ( DRAM), down 10.9%, were all laggards within the technology sector with Research in Motion ( RIMM) 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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.