Altera Corp. (ALTR): Today's Featured Electronics 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.

Altera ( ALTR) pushed the Electronics industry higher today making it today's featured electronics winner. The industry as a whole closed the day down 0.7%. By the end of trading, Altera rose 35 cents (1.1%) to $32.33 on average volume. Throughout the day, 4.7 million shares of Altera exchanged hands as compared to its average daily volume of 3.8 million shares. The stock ranged in a price between $31.89-$32.43 after having opened the day at $32.02 as compared to the previous trading day's close of $31.98. Other companies within the Electronics industry that increased today were: Superconductor Technologies ( SCON), up 11.4%, eMagin Corporation ( EMAN), up 11.2%, CollabRx ( CLRX), up 9.8%, and Tegal Corporation ( TGAL), up 9.8%.
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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 $10.26 billion and is part of the technology sector. The company has a P/E ratio of 17.1, equal to the average electronics industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 13.8% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate Altera a buy, no analysts rate it a sell, and 10 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, increase in stock price during the past year 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 negative front, SatCon Technology Corporation ( SATC), down 46.7%, Advanced Micro Devices ( AMD), down 14.4%, Nexxus Lighting ( NEXS), down 11.3%, and LDK Solar Company ( LDK), down 8.1%, were all laggards within the electronics industry with Agilent Technologies ( A) being today's electronics industry laggard.

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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