Cavium Inc (CAVM): Today's Featured Electronics Laggard

Cavium ( CAVM) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Cavium fell 54 cents (-1.7%) to $31.04 on average volume. Throughout the day, 1.4 million shares of Cavium exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in price between $30.98-$31.88 after having opened the day at $31.78 as compared to the previous trading day's close of $31.58. Other companies within the Electronics industry that declined today were: Netlist ( NLST), down 17.4%, Canadian Solar ( CSIQ), down 11%, Plug Power ( PLUG), down 9.3%, and eMagin Corporation ( EMAN), down 8.2%.

Cavium, Inc. designs, develops, and markets semiconductor processors for intelligent and secure networks. Its semiconductor products enable customers to develop networking, wireless, storage, and electronic equipment. Cavium has a market cap of $1.61 billion and is part of the technology sector. The company has a P/E ratio of 29.2, above the S&P 500 P/E ratio of 17.7. Shares are down 33% year to date as of the close of trading on Tuesday. Currently there are 13 analysts that rate Cavium a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates Cavium as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

On the positive front, Alpha & Omega Semiconductor ( AOSL), up 18.7%, Dynasil Corporation of America ( DYSL), up 18.3%, Digital Power Corporation ( DPW), up 13%, and Photronics ( PLAB), up 10.7%, were all gainers within the electronics industry with Texas Instruments ( TXN) being today's featured electronics industry leader.

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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