TE Connectivity Ltd (TEL): Today's Featured Electronics 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.

TE Connectivity ( TEL) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day down 0.7%. By the end of trading, TE Connectivity fell 74 cents (-2.1%) to $35.10 on average volume. Throughout the day, 1.7 million shares of TE Connectivity exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in price between $34.89-$35.78 after having opened the day at $35.74 as compared to the previous trading day's close of $35.84. Other companies within the Electronics industry that declined today were: Nexxus Lighting ( NEXS), down 24.3%, Ultra Clean Holdings ( UCTT), down 10.4%, Kewaunee Scientific ( KEQU), down 9.7%, and Memsic ( MEMS), down 8.3%.

TE Connectivity Ltd. engages in the design and manufacture of products that connect and protect the flow of power and data inside various products used by consumers and industries. TE Connectivity has a market cap of $14.9 billion and is part of the technology sector. The company has a P/E ratio of 13.9, below the average electronics industry P/E ratio of 14.4 and below the S&P 500 P/E ratio of 17.7. Shares are up 15.9% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate TE Connectivity a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates TE Connectivity as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Planar Systems ( PLNR), up 9.5%, Enova Systems ( ENA), up 9.1%, Ascent Solar Technologies ( ASTI), up 7.8%, and Sutron Corporation ( STRN), up 6.5%, were all gainers within the electronics industry with SanDisk ( SNDK) 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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