VMWare Inc. (VMW): Today's Featured Computer Software & Services Laggard
Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model
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 0.3%. By the end of trading, VMWare fell $0.74 (-1.0%) to $70.50 on average volume. Throughout the day, 3,127,591 shares of VMWare exchanged hands as compared to its average daily volume of 3,396,400 shares. The stock ranged in price between $70.07-$71.99 after having opened the day at $71.84 as compared to the previous trading day's close of $71.24. Other companies within the Computer Software & Services industry that declined today were: Nuance Communications ( NUAN), down 18.3%, Kingtone Wirelessinfo Solution ( KONE), down 12.6%, MicroStrategy ( MSTR), down 9.2% and Webmedia Brands ( WEBM), down 8.0%.
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VMware, Inc. provides virtualization infrastructure solutions in the United States and internationally. VMWare has a market cap of $9.3 billion and is part of the technology sector. The company has a P/E ratio of 39.8, above the S&P 500 P/E ratio of 17.7. Shares are down 24.1% year to date as of the close of trading on Monday.
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, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
- You can view the full VMWare Ratings Report .
On the positive front, GlobalSCAPE Incorporated ( GSB), down 11.0%, Greenway Medical Technologies ( GWAY), down 8.8%, e-Future Information Technology ( EFUT), down 7.9% and 3D Systems Corporation ( DDD), down 6.9% , were all gainers within the computer software & services industry with Oracle Corporation ( ORCL) being today's featured computer software & services industry leader.
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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).