ASML Holding NV (ASML): 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.

ASML ( ASML) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 0.4%. By the end of trading, ASML fell $3.51 (-6.5%) to $50.08 on heavy volume. Throughout the day, 23.2 million shares of ASML exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in price between $48.73-$52.64 after having opened the day at $52.52 as compared to the previous trading day's close of $53.59. Other companies within the Electronics industry that declined today were: SatCon Technology Corporation ( SATC), down 76.4%, Daystar Technologies ( DSTI), down 17.1%, A123 Systems ( AONE), down 11.4%, and Meade Instruments Corporation ( MEAD), down 8.9%.
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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 $21.56 billion and is part of the technology sector. The company has a P/E ratio of 71.4, above the average electronics industry P/E ratio of 13.3 and above the S&P 500 P/E ratio of 17.7. Shares are up 28.2% year to date as of the close of trading on Tuesday. Currently there are eight analysts that rate ASML a buy, no analysts rate it a sell, and two rate 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, Cymer ( CYMI), up 49.4%, Badger Meter ( BMI), up 15.1%, Aehr Test Systems ( AEHR), up 14.7%, and Suntech Power Holdings ( STP), up 13%, were all gainers within the electronics industry with Corning ( GLW) 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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