Finisar Corporation (FNSR): Today's Featured Computer Hardware Winner

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.

Finisar Corporation ( FNSR) pushed the Computer Hardware industry higher today making it today's featured computer hardware winner. The industry as a whole closed the day down 0.3%. By the end of trading, Finisar Corporation rose 21 cents (1.4%) to $15.57 on light volume. Throughout the day, 1.7 million shares of Finisar Corporation exchanged hands as compared to its average daily volume of 2.6 million shares. The stock ranged in a price between $15.28-$15.69 after having opened the day at $15.33 as compared to the previous trading day's close of $15.36. Other companies within the Computer Hardware industry that increased today were: XRS ( XRSC), up 20.7%, Mitek Systems ( MITK), up 7.3%, Logitech International S.A ( LOGI), up 7%, and OCZ Technology Group ( OCZ), up 5.6%.

Finisar Corporation engages in the design, development, manufacture, and sale of optical subsystems and components for use in fiber optics-based data communication and telecommunication networks applications. Finisar Corporation has a market cap of $1.24 billion and is part of the technology sector. The company has a P/E ratio of 33.8, above the average computer hardware industry P/E ratio of 29.5 and above the S&P 500 P/E ratio of 17.7. Shares are down 7.3% year to date as of the close of trading on Wednesday. Currently there are five analysts that rate Finisar Corporation a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Finisar Corporation as a hold. 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.

On the negative front, Hewlett-Packard ( HPQ), down 8.2%, Quantum Corporation ( QTM), down 8.1%, Echelon Corporation ( ELON), down 7.1%, and Hauppauge Digital ( HAUP), down 6.1%, were all laggards within the computer hardware industry with Western Digital Corporation ( WDC) being today's computer hardware industry laggard.

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