Informatica Corporation (INFA): 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.

Informatica Corporation ( INFA) pushed the Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day down 0.4%. By the end of trading, Informatica Corporation rose 44 cents (1.2%) to $36.94 on average volume. Throughout the day, 1.7 million shares of Informatica Corporation exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in a price between $35.80-$37 after having opened the day at $36.36 as compared to the previous trading day's close of $36.50. Other companies within the Technology sector that increased today were: Viasat ( VSAT), up 24%, Vipshop Holdings Ltd ADR ( VIPS), up 22.1%, Planar Systems ( PLNR), up 21.3%, and Geospace Technologies ( GEOS), up 17.5%.
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Informatica Corporation provides enterprise data integration and data quality software and services worldwide. Informatica Corporation has a market cap of $3.95 billion and is part of the computer software & services industry. The company has a P/E ratio of 27.9, above the S&P 500 P/E ratio of 17.7. Shares are up 20.7% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate Informatica Corporation a buy, one analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Informatica Corporation 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, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Akamai Technologies ( AKAM), down 15.2%, Peregrine Semiconductor ( PSMI), down 14.3%, Atmel Corporation ( ATML), down 14.2%, and Triquint Semiconductor ( TQNT), down 12.6%, were all laggards within the technology sector with Citrix Systems ( CTXS) 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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