Liquidity Service Inc. (LQDT): Today's Featured Technology 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.

Liquidity Service ( LQDT) pushed the Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day up 0.1%. By the end of trading, Liquidity Service rose 55 cents (1%) to $54.49 on light volume. Throughout the day, 279,924 shares of Liquidity Service exchanged hands as compared to its average daily volume of one million shares. The stock ranged in a price between $53.70-$54.50 after having opened the day at $53.77 as compared to the previous trading day's close of $53.94. Other companies within the Technology sector that increased today were: Ditech Networks Corporation ( DITC), up 74.5%, Telestone Technologies Corporation ( TSTC), up 45%, Winland Electronics ( WEX), up 16.7%, and Zhone Technologies ( ZHNE), up 15.3%.
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Liquidity Services, Inc. operates various online auction marketplaces for surplus and salvage assets in the United States. Liquidity Service has a market cap of $1.67 billion and is part of the retail industry. The company has a P/E ratio of 29.4, below the average retail industry P/E ratio of 38.4 and above the S&P 500 P/E ratio of 17.7. Shares are up 45.7% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Liquidity Service a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Liquidity Service as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Ascent Solar Technologies ( ASTI), down 13.9%, A123 Systems ( AONE), down 10.5%, WPCS International ( WPCS), down 10.5%, and Clearwire ( CLWR), down 10.4%, were all laggards within the technology sector with Sprint Nextel ( S) being today's technology sector laggard.

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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