Adobe Systems Inc (ADBE): 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

Adobe Systems ( ADBE) pushed the Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole closed the day down 1.4%. By the end of trading, Adobe Systems fell $0.85 (-1.9%) to $43.17 on average volume. Throughout the day, 3,013,954 shares of Adobe Systems exchanged hands as compared to its average daily volume of 3,767,600 shares. The stock ranged in price between $42.95-$44.31 after having opened the day at $44.12 as compared to the previous trading day's close of $44.02. Other companies within the Computer Software & Services industry that declined today were: SolarWinds ( SWI), down 13.7%, GRAVITY ( GRVY), down 10.3%, CommVault Systems ( CVLT), down 8.3% and E2open ( EOPN), down 7.2%.
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Adobe Systems Incorporated operates as a diversified software company worldwide. It offers a line of software and services used by creative professionals, marketers, knowledge workers, application developers, enterprises, and consumers. Adobe Systems has a market cap of $22.2 billion and is part of the technology sector. The company has a P/E ratio of 30.8, above the S&P 500 P/E ratio of 17.7. Shares are up 17.5% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate Adobe Systems a buy, 1 analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Adobe Systems as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Kingtone Wirelessinfo Solution ( KONE), down 15.6%, BOS Better Online Solutions ( BOSC), down 9.2%, Sonic Foundry ( SOFO), down 7.8% and Velti ( VELT), down 7.6%.

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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