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 down 1.3%. By the end of trading, VMWare fell $2.81 (-3.0%) to $90.06 on heavy volume. Throughout the day, 3,956,254 shares of VMWare exchanged hands as compared to its average daily volume of 2,511,700 shares. The stock ranged in price between $88.64-$93.40 after having opened the day at $92.89 as compared to the previous trading day's close of $92.87. Other companies within the Computer Software & Services industry that declined today were: Rubicon Project ( RUBI), down 16.4%, Varonis Systems ( VRNS), down 9.9%, ChannelAdvisor ( ECOM), down 9.5% and NQ Mobile ( NQ), down 8.4%.

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. The company has a P/E ratio of 47.1, above the S&P 500 P/E ratio of 17.7. Shares are up 3.5% year to date as of the close of trading on Friday. 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 good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Systemax ( SYX), up 7.9%, Kingtone Wirelessinfo Solution ( KONE), up 5.6%, SPS Commerce ( SPSC), up 5.4% and Changyou.com ( CYOU), up 4.8% , were all gainers within the computer software & services industry with Microsoft ( MSFT) 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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