Intuit Inc. (INTU): 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.

Intuit ( INTU) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.7%. By the end of trading, Intuit fell 82 cents (-1.3%) to $63.06 on average volume. Throughout the day, 1.7 million shares of Intuit exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in price between $62.89-$63.93 after having opened the day at $63.71 as compared to the previous trading day's close of $63.88. Other companies within the Technology sector that declined today were: Velti ( VELT), down 25.2%, Renewable Energy Trade Board ( EBOD), down 23.8%, Key Tronic Corporation ( KTCC), down 18.4%, and CEVA ( CEVA), down 13.3%.
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Intuit Inc. provides business and financial management solutions for small businesses, consumers, accounting professionals, and financial institutions primarily in the United States, Canada, the United Kingdom, India, and Singapore. Intuit has a market cap of $18.92 billion and is part of the computer software & services industry. The company has a P/E ratio of 25.1, above the S&P 500 P/E ratio of 17.7. Shares are up 7.4% year to date as of the close of trading on Tuesday. Currently there are eight analysts that rate Intuit a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Intuit as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, growth in earnings per share, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, MERU Networks ( MERU), up 41.7%, Alvarion ( ALVR), up 29.9%, Hutchinson Technology ( HTCH), up 23.1%, and Digital Power Corporation ( DPW), up 15.4%, were all gainers within the technology sector with Skyworks Solutions ( SWKS) 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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