Shutterfly Inc. (SFLY): Today's Featured Technology 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

Shutterfly ( SFLY) pushed the Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day down 1.7%. By the end of trading, Shutterfly rose $1.02 (1.9%) to $53.48 on average volume. Throughout the day, 853,820 shares of Shutterfly exchanged hands as compared to its average daily volume of 687,000 shares. The stock ranged in a price between $51.59-$54.38 after having opened the day at $52.05 as compared to the previous trading day's close of $52.46. Other companies within the Technology sector that increased today were: STEC ( STEC), up 86.9%, Keynote Systems ( KEYN), up 46.7%, Identive Group ( INVE), up 25.0% and ModusLink Global Solutions ( MLNK), up 14.2%.
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Shutterfly, Inc. provides digital personalized photo products and services in the United States. It offers a range of personalized photo-based products and services for consumers to upload, edit, enhance, organize, find, share, create, print, and preserve their memories. Shutterfly has a market cap of $1.9 billion and is part of the diversified services industry. The company has a P/E ratio of 89.7, above the S&P 500 P/E ratio of 17.7. Shares are up 75.6% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate Shutterfly a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Shutterfly as a hold. 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 and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and feeble growth in the company's earnings per share.

On the negative front, Friendfinder Networks ( FFN), down 23.4%, TigerLogic Corporation ( TIGR), down 16.5%, Dynasil Corporation of America ( DYSL), down 16.1% and Intelligent Systems ( INS), down 14.0% , were all laggards within the technology sector with Baidu ( BIDU) being today's technology sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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