Teradata Corporation (TDC): 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.

Teradata Corporation ( TDC) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Teradata Corporation fell $2.35 (-3.7%) to $60.46 on heavy volume. Throughout the day, 2.9 million shares of Teradata Corporation exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in price between $60.24-$63 after having opened the day at $63 as compared to the previous trading day's close of $62.81. Other companies within the Technology sector that declined today were: Dialogic ( DLGC), down 14.9%, Dataram Corporation ( DRAM), down 11.4%, Pulse Electronics ( PULS), down 10.2%, and Vipshop Holdings Ltd ADR ( VIPS), down 10%.
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Teradata Corporation provides analytic data solutions worldwide. The company offers various data warehousing solutions that comprise software, hardware, and related business consulting and support services. Teradata Corporation has a market cap of $10.69 billion and is part of the computer hardware industry. The company has a P/E ratio of 22.2, above the S&P 500 P/E ratio of 17.7. Shares are up 2.1% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Teradata Corporation a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Teradata 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, impressive record of earnings per share growth, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, China Mobile Games and Entertainment Group ( CMGE), up 65.3%, DynaVox ( DVOX), up 37.7%, Wireless Ronin Technologies ( RNIN), up 29%, and Novatel Wireless ( NVTL), up 14.4%, were all gainers within the technology sector with Cerner Corporation ( CERN) 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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