NetApp Inc. (NTAP): 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

NetApp ( NTAP) pushed the Computer Hardware industry lower today making it today's featured Computer Hardware laggard. The industry as a whole closed the day down 1.0%. By the end of trading, NetApp fell $0.94 (-2.7%) to $33.78 on average volume. Throughout the day, 5,839,714 shares of NetApp exchanged hands as compared to its average daily volume of 6,249,400 shares. The stock ranged in price between $33.68-$34.96 after having opened the day at $34.86 as compared to the previous trading day's close of $34.72. Other companies within the Computer Hardware industry that declined today were: Radcom ( RDCM), down 10.0%, OCZ Technology Group ( OCZ), down 9.7%, SanDisk ( SNDK), down 6.6% and Xplore Technologies Corporation Class A ( XPLR), down 5.7%.
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NetApp, Inc. engages in design, manufacture, marketing, and technical support of networked storage solutions. The company supply enterprise storage and data management software, and hardware products and services. NetApp has a market cap of $12.9 billion and is part of the technology sector. The company has a P/E ratio of 25.9, above the S&P 500 P/E ratio of 17.7. Shares are up 6.7% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates NetApp as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, good cash flow from operations, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Performance Technologies ( PTIX), down 9.9%, Dataram Corporation ( DRAM), down 7.4%, Radisys Corporation ( RSYS), down 5.0% and Video Display Corporation ( VIDE), down 3.3%.

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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