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

VMware ( VMW) pushed the Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole closed the day down 0.2%. By the end of trading, VMware fell $2.14 (-2.5%) to $83.19 on heavy volume. Throughout the day, 2,805,949 shares of VMware exchanged hands as compared to its average daily volume of 1,855,900 shares. The stock ranged in price between $82.82-$84.60 after having opened the day at $84.50 as compared to the previous trading day's close of $85.33. Other companies within the Computer Software & Services industry that declined today were: Sungame ( SGMZ), down 20.6%, Red Hat ( RHT), down 11.7%, Liquid Holdings Group ( LIQD), down 9.7% and Park City Group ( PCYG), down 8.6%.

VMware, Inc. provides virtualization infrastructure solutions in the United States and internationally. VMware has a market cap of $11.3 billion and is part of the technology sector. Shares are down 7.0% year to date as of the close of trading on Monday. Currently there are 14 analysts that rate VMware a buy, 2 analysts rate it a sell, and 14 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 positive front, Greenway Medical Technologies ( GWAY), up 19.1%, FAB Universal ( FU), up 18.9%, ChannelAdvisor ( ECOM), up 8.0% and PAR Technology ( PAR), up 5.3% , were all gainers within the computer software & services industry with Zynga ( ZNGA) being today's featured computer software & services industry leader.

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).

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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