VMware Inc. (VMW): Today's Featured Computer Software & Services Winner

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

VMware ( VMW) pushed the Computer Software & Services industry higher today making it today's featured computer software & services winner. The industry as a whole was unchanged today. By the end of trading, VMware rose $1.38 (2.0%) to $71.28 on average volume. Throughout the day, 3,575,589 shares of VMware exchanged hands as compared to its average daily volume of 2,461,700 shares. The stock ranged in a price between $70.09-$71.55 after having opened the day at $70.20 as compared to the previous trading day's close of $69.90. Other companies within the Computer Software & Services industry that increased today were: Sourcefire ( FIRE), up 27.8%, GigaMedia ( GIGM), up 22.1%, CounterPath Corporation ( CPAH), up 20.8% and Smith Micro Software ( SMSI), up 14.4%.

VMware, Inc. provides virtualization infrastructure solutions in the United States and internationally. VMware has a market cap of $9.1 billion and is part of the technology sector. Shares are down 25.7% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate VMware a buy, 2 analysts rate it a sell, and 16 rate it a hold.

TheStreet Ratings rates VMware as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

On the negative front, Computer Task Group ( CTGX), down 24.1%, Computer Task Group ( CTG), down 24.1%, Sungame ( SGMZ), down 20.2% and Descartes Systems Group ( DSGX), down 7.5% , 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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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