Microchip Technology Inc. (MCHP): Today's Featured Electronics Winner

Microchip Technology ( MCHP) pushed the Electronics industry higher today making it today's featured electronics winner. The industry as a whole closed the day down 1.1%. By the end of trading, Microchip Technology rose 46 cents (1.4%) to $33.36 on average volume. Throughout the day, 3.3 million shares of Microchip Technology exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in a price between $32.68-$33.41 after having opened the day at $32.91 as compared to the previous trading day's close of $32.90. Other companies within the Electronics industry that increased today were: Ascent Solar Technologies ( ASTI), up 10.8%, Giga-tronics ( GIGA), up 10%, Tower Semiconductor ( TSEM), up 8.5%, and Lime Energy ( LIME), up 7.7%.

Microchip Technology Incorporated engages in the development, manufacture, and sale of semiconductor products for embedded control applications. Microchip Technology has a market cap of $6.29 billion and is part of the technology sector. The company has a P/E ratio of 19.7, equal to the average electronics industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are down 10.2% year to date as of the close of trading on Friday. Currently there are six analysts that rate Microchip Technology a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Microchip Technology as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Canadian Solar ( CSIQ), down 15.9%, Suntech Power Holdings ( STP), down 14.7%, TranSwitch Corporation ( TXCC), down 11.9%, and Enova Systems ( ENA), down 10.8%, were all laggards within the electronics industry with SanDisk ( SNDK) being today's electronics industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the electronics industry could consider iShares Dow Jones US Technology ( IYW) while those bearish on the electronics industry could consider ProShares Ultra Short Semiconductor ( SSG).
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