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 0.2%. By the end of trading, VMware rose $1.67 (1.6%) to $104.84 on light volume. Throughout the day, 1,705,124 shares of VMware exchanged hands as compared to its average daily volume of 2,428,500 shares. The stock ranged in a price between $102.65-$105.10 after having opened the day at $103.07 as compared to the previous trading day's close of $103.17. Other companies within the Computer Software & Services industry that increased today were: The9 ( NCTY), up 7.5%, BluePhoenix Solutions ( BPHX), up 6.9%, FalconStor Software ( FALC), up 6.8% and GlobalSCAPE Incorporated ( GSB), up 6.7%.

VMware, Inc. provides virtualization infrastructure solutions in the United States and internationally. VMware has a market cap of $13.5 billion and is part of the technology sector. Shares are up 15.0% year to date as of the close of trading on Thursday. Currently there are 19 analysts that rate VMware a buy, 1 analyst rates it a sell, and 9 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. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the negative front, Kingtone Wirelessinfo Solution ( KONE), down 13.2%, Castlight Health Inc Class B ( CSLT), down 9.0%, AthenaHealth ( ATHN), down 6.9% and China Digital TV ( STV), down 5.7% , were all laggards within the computer software & services industry with Cognizant Technology Solutions Corporation ( CTSH) 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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