SolarWinds Inc. (SWI): Today's Featured Technology Laggard

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.

SolarWinds ( SWI) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.2%. By the end of trading, SolarWinds fell $10.23 (-22.2%) to $35.86 on heavy volume. Throughout the day, 8,437,537 shares of SolarWinds exchanged hands as compared to its average daily volume of 996,700 shares. The stock ranged in price between $35.50-$38.00 after having opened the day at $36.55 as compared to the previous trading day's close of $46.09. Other companies within the Technology sector that declined today were: Hutchinson Technology ( HTCH), down 30.8%, SatCon Technology Corporation ( SATC), down 16.7%, TeleCommunication Systems ( TSYS), down 14.5% and Zynga ( ZNGA), down 14.0%.

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 $3.4 billion and is part of the computer software & services industry. Shares are down 12.1% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate SolarWinds a buy, no analysts rate it a sell, and 8 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, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Interphase ( INPH), up 51.8%, Friendfinder Networks ( FFN), up 31.6%, Wave Systems Corporation ( WAVX), up 18.5% and SPS Commerce ( SPSC), up 16.0% , were all gainers within the technology sector with Groupon ( GRPN) being today's featured technology sector leader.

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).

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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