SolarWinds Inc. (SWI): 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

SolarWinds ( SWI) 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 down 1.0%. By the end of trading, SolarWinds rose $0.57 (1.4%) to $40.59 on light volume. Throughout the day, 577,926 shares of SolarWinds exchanged hands as compared to its average daily volume of 949,900 shares. The stock ranged in a price between $39.69-$40.80 after having opened the day at $39.85 as compared to the previous trading day's close of $40.02. Other companies within the Computer Software & Services industry that increased today were: FAB Universal ( FU), up 6.9%, Top Image Systems ( TISA), up 6.2%, AutoNavi Holdings ( AMAP), up 5.0% and Webmedia Brands ( WEBM), up 4.8%.
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SolarWinds, Inc. designs, develops, markets, sells, and supports enterprise-class information technology (IT) and infrastructure management software to IT professionals in various organizations worldwide. SolarWinds has a market cap of $3.1 billion and is part of the technology sector. The company has a P/E ratio of 36.5, above the S&P 500 P/E ratio of 17.7. Shares are down 20.7% year to date as of the close of trading on Tuesday. Currently there are 5 analysts that rate SolarWinds a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates SolarWinds as a buy. 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Authentidate Holding Corporation ( ADAT), down 14.7%, ChyronHego ( CHYR), down 12.6%, Cimatron ( CIMT), down 11.1% and Marketo ( MKTO), down 6.4% , were all laggards within the computer software & services industry with Accenture ( ACN) 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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