Dell Inc (DELL): Computer Hardware's Highlighted Dud Of The Day

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.

Dell ( DELL) pushed the Computer Hardware industry lower today making it today's featured Computer Hardware laggard. The industry as a whole closed the day down 0.8%. By the end of trading, Dell fell 18 cents (-1.2%) to $14.04 on light volume. Throughout the day, 18 million shares of Dell exchanged hands as compared to its average daily volume of 38.1 million shares. The stock ranged in price between $14.03-$14.19 after having opened the day at $14.19 as compared to the previous trading day's close of $14.21. Other companies within the Computer Hardware industry that declined today were: OCZ Technology Group ( OCZ), down 12.5%, Dot Hill Systems Corporation ( HILL), down 7.6%, Hewlett-Packard ( HPQ), down 6.5%, and Performance Technologies ( PTIX), down 6.1%.
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Dell Inc., an information technology company, provides a range of technology solutions worldwide. Dell has a market cap of $24.79 billion and is part of the technology sector. The company has a P/E ratio of 10.5, below the S&P 500 P/E ratio of 17.7. Shares are up 39.9% year to date as of the close of trading on Wednesday. Currently there is one analyst that rates Dell a buy, two analysts rate it a sell, and 19 rate it a hold.

TheStreet Ratings rates Dell as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and poor profit margins.

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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