Stratasys LTD (SSYS): Today's Featured Computer Hardware 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.

Stratasys ( SSYS) pushed the Computer Hardware industry lower today making it today's featured Computer Hardware laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Stratasys fell $4.61 (-6.1%) to $71.20 on heavy volume. Throughout the day, 2.2 million shares of Stratasys exchanged hands as compared to its average daily volume of 715,600 shares. The stock ranged in price between $69.26-$75.50 after having opened the day at $75.50 as compared to the previous trading day's close of $75.81. Other companies within the Computer Hardware industry that declined today were: Crossroads Systems ( CRDS), down 4.3%, Hauppauge Digital ( HAUP), down 3.6%, Radcom ( RDCM), down 3.5%, and OCZ Technology Group ( OCZ), down 2.8%.
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Stratasys Ltd. offers manufacture and sale of three-dimensional (3D) printers and materials that create prototypes and manufactured goods directly from 3D CAD files or other 3D content. Its 3D printers are based on patented fused deposition modeling (FDM) and PolyJet inkjet-based technologies. Stratasys has a market cap of $2.89 billion and is part of the industrial goods sector. The company has a P/E ratio of 88.8, above the S&P 500 P/E ratio of 17.7. Shares are down 5.8% year to date as of the close of trading on Wednesday. Currently there are three analysts that rate Stratasys a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Stratasys as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Dataram Corporation ( DRAM), up 10%, XRS ( XRSC), up 5.4%, STEC ( STEC), up 5.1%, and Brocade Communications Systems ( BRCD), up 4.2%, were all gainers within the computer hardware industry with Aruba Networks ( ARUN) being today's featured computer hardware industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer hardware industry could consider iShares Dow Jones US Technology ( IYW) while those bearish on the computer hardware industry could consider ProShares Ultra Short Semiconductor ( SSG).

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