EMC Corporation (EMC): 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

EMC Corporation ( EMC) pushed the Computer Hardware industry lower today making it today's featured Computer Hardware laggard. The industry as a whole closed the day up 0.3%. By the end of trading, EMC Corporation fell $0.41 (-1.7%) to $24.33 on average volume. Throughout the day, 22,473,447 shares of EMC Corporation exchanged hands as compared to its average daily volume of 22,544,400 shares. The stock ranged in price between $24.25-$24.94 after having opened the day at $24.84 as compared to the previous trading day's close of $24.74. Other companies within the Computer Hardware industry that declined today were: Hutchinson Technology ( HTCH), down 5.6%, Identive Group ( INVE), down 5.0%, Immersion Corporation ( IMMR), down 4.3% and Teradata Corporation ( TDC), down 4.2%.
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EMC Corporation, together with its subsidiaries, develops, delivers, and supports information infrastructure and virtual infrastructure technologies, solutions, and services. EMC Corporation has a market cap of $52.2 billion and is part of the technology sector. The company has a P/E ratio of 20.4, above the S&P 500 P/E ratio of 17.7. Shares are down 2.2% year to date as of the close of trading on Thursday. Currently there are 26 analysts that rate EMC Corporation a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates EMC Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Interphase ( INPH), down 12.6%, Performance Technologies ( PTIX), down 10.3%, STEC ( STEC), down 6.2% and SMART Technologies ( SMT), down 6.0% , were all gainers within the computer hardware industry with Aruba Networks ( ARUN) being today's featured computer hardware industry leader.

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).

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