VMWare Inc. (VMW): Today's Featured Computer Software & Services Loser

By TheStreet Wire - 05/10/12 - 5:01 PM EDT
Tickers in this article: VMW

VMWare (VMW) pushed the Computer Software & Services industry lower today making it today's featured Computer Software & Services loser. The industry as a whole closed the day down 0.5%. By the end of trading, VMWare fell $4.15 (-3.9%) to $101.18 on heavy volume. Throughout the day, 2.9 million shares of VMWare exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in price between $100.62-$106.49 after having opened the day at $105.79 as compared to the previous trading day's close of $105.33. Other company's within the Computer Software & Services industry that declined today were: Wave Systems Corporation (WAVX), down 10.1%, Salesforce.com (CRM), down 9.1%, Netsol Technologies (NTWK), down 8.9%, and Imperva (IMPV), down 8.7%.

VMware, Inc. provides virtualization and virtualization-based cloud infrastructure solutions in the United States and internationally. VMWare has a market cap of $13.37 billion and is part of the technology sector. The company has a P/E ratio of 57.4, equal to the average computer software & services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 26.6% year to date as of the close of trading on Wednesday. Currently there are 17 analysts that rate VMWare a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates VMWare as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, Virtusa Corporation (VRTU), up 17.1%, Kingtone Wirelessinfo Solution (KONE), up 15.4%, Astea International (ATEA), up 7.5%, and Glu Mobile (GLUU), up 7.3%, were all gainers within the computer software & services industry with BMC Software (BMC) being today's featured computer software & services industry winner.

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).

Tickers in this article: VMW