Riverbed Technology Incorporated (RVBD): 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.

Riverbed Technology Incorporated ( RVBD) pushed the Computer Hardware industry lower today making it today's featured Computer Hardware laggard. The industry as a whole closed the day up 0.7%. By the end of trading, Riverbed Technology Incorporated fell 19 cents (-1.2%) to $15.18 on average volume. Throughout the day, 3.9 million shares of Riverbed Technology Incorporated exchanged hands as compared to its average daily volume of 4.3 million shares. The stock ranged in price between $15.13-$15.46 after having opened the day at $15.44 as compared to the previous trading day's close of $15.37. Other companies within the Computer Hardware industry that declined today were: iGo ( IGOI), down 8.6%, Dot Hill Systems Corporation ( HILL), down 7.2%, Dataram Corporation ( DRAM), down 3.3%, and Mad Catz Interactive ( MCZ), down 2.2%.
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Riverbed Technology, Inc. provides solutions to the fundamental problems associated with information technology (IT) performance across wide area networks (WANs) in the United States and internationally. Riverbed Technology Incorporated has a market cap of $2.59 billion and is part of the technology sector. The company has a P/E ratio of 48.1, above the S&P 500 P/E ratio of 17.7. Shares are down 19.5% year to date as of the close of trading on Wednesday. Currently there are nine analysts that rate Riverbed Technology Incorporated a buy, one analyst rates it a sell, and 16 rate it a hold.

TheStreet Ratings rates Riverbed Technology Incorporated as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

On the positive front, Datalink Corporation ( DTLK), up 5.8%, Finisar Corporation ( FNSR), up 5.6%, Quantum Corporation ( QTM), up 5.6%, and Interphase ( INPH), up 4.4%, were all gainers within the computer hardware industry with International Business Machines ( IBM) 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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