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 0.4%. By the end of trading, VMware rose $1.44 (1.5%) to $97.69 on average volume. Throughout the day, 2,250,564 shares of VMware exchanged hands as compared to its average daily volume of 2,279,400 shares. The stock ranged in a price between $96.28-$99.22 after having opened the day at $96.64 as compared to the previous trading day's close of $96.25. Other companies within the Computer Software & Services industry that increased today were: Edgewater Technology ( EDGW), up 20.3%, GigaMedia ( GIGM), up 8.0%, Intelligent Systems ( INS), up 7.7% and IntraLinks Holdings ( IL), up 7.4%.

VMware, Inc. provides virtualization infrastructure solutions in the United States and internationally. VMware has a market cap of $12.6 billion and is part of the technology sector. Shares are up 7.3% year to date as of the close of trading on Tuesday. Currently there are 18 analysts that rate VMware a buy, 2 analysts rate it a sell, and 10 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, DigitalGlobe ( DGI), down 27.3%, TigerLogic Corporation ( TIGR), down 12.1%, China Digital TV ( STV), down 10.9% and Pegasystems ( PEGA), down 10.2%.

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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