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 closed the day down 0.8%. By the end of trading, VMware rose $0.87 (1.0%) to $84.31 on light volume. Throughout the day, 1,443,584 shares of VMware exchanged hands as compared to its average daily volume of 2,403,300 shares. The stock ranged in a price between $83.30-$85.35 after having opened the day at $83.30 as compared to the previous trading day's close of $83.44. Other companies within the Computer Software & Services industry that increased today were: Astea International ( ATEA), up 18.9%, XRS ( XRSC), up 14.2%, Mediabistro ( MBIS), up 5.6% and Webmedia Brands ( WEBM), up 5.6%.

VMware, Inc. provides virtualization infrastructure solutions in the United States and internationally. VMware has a market cap of $10.8 billion and is part of the technology sector. Shares are down 11.4% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate VMware a buy, 2 analysts rate it a sell, and 15 rate it a hold.

TheStreet Ratings rates VMware as a buy. 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, growth in earnings per share, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Velti ( VELT), down 65.9%, China Digital TV ( STV), down 10.1%, EFuture Information Technology ( EFUT), down 7.7% and Bottomline Technologies ( EPAY), down 7.1% , were all laggards within the computer software & services industry with Activision Blizzard ( ATVI) 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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