Siemens AG (SI): 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.

Siemens ( SI) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 1.6%. By the end of trading, Siemens fell $2.14 (-2.1%) to $101 on light volume. Throughout the day, 440,907 shares of Siemens exchanged hands as compared to its average daily volume of 616,500 shares. The stock ranged in price between $100.93-$102.01 after having opened the day at $101.93 as compared to the previous trading day's close of $103.14. Other companies within the Technology sector that declined today were: Pixelworks ( PXLW), down 20.3%, Suntech Power Holdings ( STP), down 17.6%, Advanced Micro Devices ( AMD), down 16.8%, and Marvell Technology Group ( MRVL), down 14.3%.
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Siemens Aktiengesellschaft, an electronics and electrical engineering company, operates in the industry, energy, healthcare, and infrastructure and cities sectors worldwide. Siemens has a market cap of $89.97 billion and is part of the telecommunications industry. The company has a P/E ratio of 32.1, above the average telecommunications industry P/E ratio of 17.2 and above the S&P 500 P/E ratio of 17.7. Shares are up 7.9% year to date as of the close of trading on Thursday. Currently there are two analysts that rate Siemens a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Siemens as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow.

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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