Adobe Systems Inc (ADBE): 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.

Adobe Systems ( ADBE) 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 down 0.5%. By the end of trading, Adobe Systems fell 58 cents (-1.5%) to $37.94 on light volume. Throughout the day, 2.6 million shares of Adobe Systems exchanged hands as compared to its average daily volume of 4.1 million shares. The stock ranged in price between $37.88-$38.51 after having opened the day at $38.50 as compared to the previous trading day's close of $38.52. Other companies within the Computer Software & Services industry that declined today were: Velti ( VELT), down 25.2%, Attunity ( ATTU), down 13%, Majesco Entertainment Company ( COOL), down 8.1%, and Greenway Medical Technologies ( GWAY), down 5.6%.
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Adobe Systems Incorporated operates as a diversified software company worldwide. It offers a line of software and services used by creative professionals, marketers, knowledge workers, application developers, enterprises, and consumers. Adobe Systems has a market cap of $19.07 billion and is part of the technology sector. The company has a P/E ratio of 23, 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 10 analysts that rate Adobe Systems a buy, one analyst rates it a sell, and 12 rate it a hold.

TheStreet Ratings rates Adobe Systems as a buy. 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, reasonable valuation levels, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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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