Altera Corp. (ALTR): 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.

Altera ( ALTR) 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, Altera fell 60 cents (-1.6%) to $36.46 on average volume. Throughout the day, 3.2 million shares of Altera exchanged hands as compared to its average daily volume of 3.7 million shares. The stock ranged in price between $36.32-$37.32 after having opened the day at $37.08 as compared to the previous trading day's close of $37.06. Other companies within the Electronics industry that declined today were: Enova Systems ( ENA), down 16.7%, Vimicro International Corporation ( VIMC), down 10%, A123 Systems ( AONE), down 9.4%, and China Sunergy ( CSUN), down 8.7%.

Altera Corporation, a semiconductor company, designs, manufactures, and markets programmable logic devices (PLD), HardCopy application-specific integrated circuit (ASIC) devices, pre-defined design building blocks, and associated development tools. Altera has a market cap of $11.94 billion and is part of the technology sector. The company has a P/E ratio of 20, equal to the average electronics industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are down 0.1% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Altera a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Altera 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 notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the positive front, OYO Geospace Corporation ( OYOG), up 13.7%, Enphase Energy ( ENPH), up 6.5%, LDK Solar Company ( LDK), up 6.4%, and Superconductor Technologies ( SCON), up 5.2%, were all gainers within the electronics industry with Micron Technology ( MU) 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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