Brocade Communications Systems Inc (BRCD): Today's Featured Computer Hardware 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.

Brocade Communications Systems ( BRCD) pushed the Computer Hardware industry lower today making it today's featured Computer Hardware laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Brocade Communications Systems fell $0.10 (-1.2%) to $8.46 on light volume. Throughout the day, 2,861,246 shares of Brocade Communications Systems exchanged hands as compared to its average daily volume of 5,914,200 shares. The stock ranged in price between $8.33-$8.58 after having opened the day at $8.58 as compared to the previous trading day's close of $8.56. Other companies within the Computer Hardware industry that declined today were: OCZ Technology Group ( OCZ), down 8.4%, Dataram Corporation ( DRAM), down 5.2%, Hutchinson Technology ( HTCH), down 3.0% and Overland Storage ( OVRL), down 2.8%.

Brocade Communications Systems, Inc. engages in the supply of Internet protocol based Ethernet networking solutions and storage area networking (SAN) solutions to businesses and organizations worldwide. Brocade Communications Systems has a market cap of $3.6 billion and is part of the technology sector. The company has a P/E ratio of 18.3, above the S&P 500 P/E ratio of 17.7. Shares are up 60.6% year to date as of the close of trading on Tuesday. Currently there are 3 analysts that rate Brocade Communications Systems a buy, 2 analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Brocade Communications Systems as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Gigamon ( GIMO), up 4.7%, Violin Memory ( VMEM), up 4.2%, Logitech International S.A ( LOGI), up 4.1% and Identive Group ( INVE), up 3.5% , were all gainers within the computer hardware industry with International Business Machines ( IBM) being today's featured computer hardware industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer hardware industry could consider iShares Dow Jones US Technology ( IYW) while those bearish on the computer hardware industry could consider ProShares Ultra Short Semiconductor ( SSG).

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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