Sourcefire Inc. (FIRE): Today's Featured Technology Winner

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 Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day down 1.4%. By the end of trading, Sourcefire rose $3.57 (7.5%) to $51.33 on heavy volume. Throughout the day, 3,966,179 shares of Sourcefire exchanged hands as compared to its average daily volume of 901,500 shares. The stock ranged in a price between $51.03-$55.00 after having opened the day at $54.18 as compared to the previous trading day's close of $47.76. Other companies within the Technology sector that increased today were: MetroPCS Communications ( PCS), up 112.0%, Inteliquent ( IQNT), up 52.0%, Brightcove ( BCOV), up 24.8% and Kingtone Wirelessinfo Solution ( KONE), up 23.1%.
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Sourcefire, Inc. provides intelligent cybersecurity technologies worldwide. Sourcefire has a market cap of $1.6 billion and is part of the computer software & services industry. The company has a P/E ratio of 318.6, above the S&P 500 P/E ratio of 17.7. Shares are up 7.9% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Sourcefire a buy, no analysts rate it a sell, and 6 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 feeble growth in the company's earnings per share.

On the negative front, SemiLEDs ( LEDS), down 20.8%, Accelrys ( ACCL), down 19.0%, Cray ( CRAY), down 17.0% and Faro Technologies ( FARO), down 14.8% , were all laggards within the technology sector with Trimble Navigation ( TRMB) being today's technology sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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