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.
VMWare (
VMW) pushed the Computer Software & Services industry higher today making it today's featured computer software & services winner. The industry as a whole closed the day up 0.8%. By the end of trading, VMWare rose $1.30 (1.8%) to $74.87 on average volume. Throughout the day, 2.1 million shares of VMWare exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in a price between $73.88-$75.15 after having opened the day at $74.01 as compared to the previous trading day's close of $73.57. Other companies within the Computer Software & Services industry that increased today were:
Changyou.com (
CYOU), up 11.9%,
China Mobile Games and Entertainment Group (
CMGE), up 11.9%,
MicroStrategy (
MSTR), up 10.1%, and
ServiceNow (
NOW), up 8.6%.
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VMware, Inc. provides virtualization and virtualization-based cloud infrastructure solutions in the United States and internationally. VMWare has a market cap of $9.44 billion and is part of the technology sector. The company has a P/E ratio of 42.8, above the S&P 500 P/E ratio of 17.7. Shares are down 21.9% year to date as of the close of trading on Monday. Currently there are 16 analysts that rate VMWare a buy, no analysts rate it a sell, and 16 rate it a hold.
TheStreet Ratings rates VMWare 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, increase in net income, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
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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