ASML Holding NV (ASML): Today's Featured Technology 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.

ASML ( ASML) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.1%. By the end of trading, ASML fell $1.05 (-1.8%) to $56.82 on heavy volume. Throughout the day, 3.7 million shares of ASML exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in price between $55.90-$57.04 after having opened the day at $56.73 as compared to the previous trading day's close of $57.87. Other companies within the Technology sector that declined today were: Audience ( ADNC), down 63.4%, Kingtone Wirelessinfo Solution ( KONE), down 29%, Envivio ( ENVI), down 17.2%, and XRS ( XRSC), down 15.5%.

ASML Holding N.V., through its subsidiaries, engages in designing, manufacturing, marketing, and servicing semiconductor processing equipment used in the fabrication of integrated circuits. ASML has a market cap of $22.89 billion and is part of the electronics industry. The company has a P/E ratio of 75.8, above the average electronics industry P/E ratio of 14.1 and above the S&P 500 P/E ratio of 17.7. Shares are up 34.2% year to date as of the close of trading on Thursday. Currently there are eight analysts that rate ASML a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates ASML as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, 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 sub par growth in net income.

On the positive front, Parkervision ( PRKR), up 13.8%, Calix ( CALX), up 10.6%, Dynasil Corporation of America ( DYSL), up 9.8%, and China Finance Online ( JRJC), up 9.1%, were all gainers within the technology sector with Agilent Technologies ( A) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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