TE Connectivity Ltd (TEL): 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.

TE Connectivity ( TEL) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.5%. By the end of trading, TE Connectivity fell 41 cents (-1.1%) to $35.74 on heavy volume. Throughout the day, 2.6 million shares of TE Connectivity exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in price between $35.54-$36.44 after having opened the day at $36.39 as compared to the previous trading day's close of $36.15. Other companies within the Technology sector that declined today were: DynaVox ( DVOX), down 30.5%, Vicon Industries ( VII), down 20.1%, Dataram Corporation ( DRAM), down 16.6%, and Qualstar Corporation ( QBAK), down 14.6%.
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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 $15.65 billion and is part of the electronics industry. The company has a P/E ratio of 14.2, below the average electronics industry P/E ratio of 15.1 and below the S&P 500 P/E ratio of 17.7. Shares are up 18.7% year to date as of the close of trading on Thursday. 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, solid stock price performance 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, BOS Better Online Solutions ( BOSC), up 31.3%, Friendfinder Networks ( FFN), up 26.3%, China Sunergy ( CSUN), up 16.7%, and Helios & Matheson Information Technology In ( HMNY), up 16.7%, were all gainers within the technology sector with Western Digital Corporation ( WDC) 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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