International Business Machines Corp (IBM): 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

International Business Machines ( IBM) pushed the Computer Hardware industry lower today making it today's featured Computer Hardware laggard. The industry as a whole closed the day down 0.8%. By the end of trading, International Business Machines fell $2.78 (-1.4%) to $201.20 on average volume. Throughout the day, 3,383,639 shares of International Business Machines exchanged hands as compared to its average daily volume of 4,243,100 shares. The stock ranged in price between $200.51-$205.23 after having opened the day at $204.78 as compared to the previous trading day's close of $203.98. Other companies within the Computer Hardware industry that declined today were: Mad Catz Interactive ( MCZ), down 5.1%, Overland Storage ( OVRL), down 4.5%, OCZ Technology Group ( OCZ), down 4.3% and Ruckus Wireless ( RKUS), down 4.3%.
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International Business Machines Corporation provides information technology (IT) products and services worldwide. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. International Business Machines has a market cap of $227.3 billion and is part of the technology sector. The company has a P/E ratio of 14.2, below the S&P 500 P/E ratio of 17.7. Shares are up 6.5% year to date as of the close of trading on Tuesday. Currently there are 9 analysts that rate International Business Machines a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates International Business Machines as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, growth in earnings per share, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Hewlett-Packard ( HPQ), down 2.8%, XRS ( XRSC), down 2.7%, STEC ( STEC), down 2.6% and Echelon Corporation ( ELON), down 2.5%.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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