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 up 1.1%. By the end of trading, VMware rose $2.57 (3.3%) to $80.99 on average volume. Throughout the day, 2,537,341 shares of VMware exchanged hands as compared to its average daily volume of 1,909,900 shares. The stock ranged in a price between $78.57-$81.17 after having opened the day at $78.72 as compared to the previous trading day's close of $78.42. Other companies within the Computer Software & Services industry that increased today were: CounterPath Corporation ( CPAH), up 15.8%, Bridgeline Digital ( BLIN), up 12.5%, BOS Better Online Solutions ( BOSC), up 10.3% and Textura ( TXTR), up 9.6%.

VMware, Inc. provides virtualization infrastructure solutions in the United States and internationally. VMware has a market cap of $10.2 billion and is part of the technology sector. The company has a P/E ratio of 38.2, above the S&P 500 P/E ratio of 17.7. Shares are down 16.7% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate VMware a buy, 2 analysts rate it a sell, and 12 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 impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

On the negative front, FAB Universal ( FU), down 26.4%, Bazaarvoice ( BV), down 17.0%, Helios and Matheson Analytics ( HMNY), down 6.3% and Sapiens International Corporation ( SPNS), down 6.1% , were all laggards within the computer software & services industry with Splunk ( SPLK) 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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