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 up 0.7%. By the end of trading, VMware fell $1.28 (-1.4%) to $88.90 on average volume. Throughout the day, 2,404,831 shares of VMware exchanged hands as compared to its average daily volume of 2,149,300 shares. The stock ranged in price between $88.35-$90.42 after having opened the day at $90.22 as compared to the previous trading day's close of $90.18. Other companies within the Computer Software & Services industry that declined today were: Sungame ( SGMZ), down 9.1%, CounterPath Corporation ( CPAH), down 6.4%, Authentidate Holding Corporation ( ADAT), down 6.1% and Liquid Holdings Group ( LIQD), down 4.6%.

VMware, Inc. provides virtualization infrastructure solutions in the United States and internationally. VMware has a market cap of $11.4 billion and is part of the technology sector. The company has a P/E ratio of 42.6, above the S&P 500 P/E ratio of 17.7. Shares are down 4.2% year to date as of the close of trading on Friday. Currently there are 15 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 positive front, Dynamics Research Corporation ( DRCO), up 58.1%, Sungy Mobile Ltd ADR ( GOMO), up 7.1%, Mind C.T.I ( MNDO), up 5.8% and Proofpoint ( PFPT), up 5.3% , were all gainers within the computer software & services industry with Intuit ( INTU) 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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