Sourcefire Inc. (FIRE): Today's Featured Computer Software & Services 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.

Sourcefire ( FIRE) pushed the Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole was unchanged today. By the end of trading, Sourcefire fell $1.81 (-3.3%) to $53.64 on average volume. Throughout the day, 1.4 million shares of Sourcefire exchanged hands as compared to its average daily volume of 945,600 shares. The stock ranged in price between $53.22-$55.50 after having opened the day at $55.45 as compared to the previous trading day's close of $55.45. Other companies within the Computer Software & Services industry that declined today were: TigerLogic Corporation ( TIGR), down 5.6%, Glu Mobile ( GLUU), down 5%, BluePhoenix Solutions ( BPHX), down 4.8%, and Wave Systems Corporation ( WAVX), down 4.6%.
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Sourcefire, Inc. provides intelligent cybersecurity technologies worldwide. Sourcefire has a market cap of $1.68 billion and is part of the technology sector. The company has a P/E ratio of 343.1, above the S&P 500 P/E ratio of 17.7. Shares are up 17.4% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Sourcefire a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Sourcefire as a hold. 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and premium valuation.

On the positive front, Park City Group ( PCYG), up 13.7%, ServiceSource International ( SREV), up 9.8%, Image Sensing Systems ( ISNS), up 8.2%, and Southcross Energy Partners ( SXE), up 6%, were all gainers within the computer software & services industry with Microsoft Corporation ( MSFT) being today's featured computer software & services industry leader.

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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