Adobe Systems Inc (ADBE): Today's Featured Computer Software & Services 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

Adobe Systems ( ADBE) pushed the Computer Software & Services industry higher today making it today's featured computer software & services winner. The industry as a whole closed the day up 0.7%. By the end of trading, Adobe Systems rose $0.59 (1.4%) to $43.19 on light volume. Throughout the day, 2,721,622 shares of Adobe Systems exchanged hands as compared to its average daily volume of 3,725,900 shares. The stock ranged in a price between $42.50-$43.38 after having opened the day at $42.65 as compared to the previous trading day's close of $42.60. Other companies within the Computer Software & Services industry that increased today were: Zix Corporation ( ZIXI), up 7.1%, Netsol Technologies ( NTWK), up 6.3%, Descartes Systems Group ( DSGX), up 6.1% and Park City Group ( PCYG), up 5.6%.
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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 $21.5 billion and is part of the technology sector. The company has a P/E ratio of 29.8, above the S&P 500 P/E ratio of 17.7. Shares are up 13.9% year to date as of the close of trading on Wednesday. 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 negative front, Kingtone Wirelessinfo Solution ( KONE), down 16.7%, China Mobile Games and Entertainment Group ( CMGE), down 9.1%, Wireless Ronin Technologies ( RNIN), down 7.3% and BOS Better Online Solutions ( BOSC), down 4.8% , were all laggards within the computer software & services industry with VMWare ( VMW) being today's computer software & services industry laggard.

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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