Cirrus Logic Inc. (CRUS): 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.

Cirrus Logic ( CRUS) pushed the Electronics industry higher today making it today's featured electronics winner. The industry as a whole closed the day down 0.3%. By the end of trading, Cirrus Logic rose $1.56 (4%) to $40.76 on average volume. Throughout the day, 2.2 million shares of Cirrus Logic exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in a price between $39.46-$40.77 after having opened the day at $39.52 as compared to the previous trading day's close of $39.21. Other companies within the Electronics industry that increased today were: SatCon Technology Corporation ( SATC), up 68%, SL Industries ( SLI), up 19.2%, Silicon Laboratories ( SLAB), up 13.6%, and RF Micro Devices ( RFMD), up 10.9%.
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Cirrus Logic, Inc., a fabless semiconductor company, develops high-precision, analog and mixed-signal integrated circuits (ICs) for a range of consumer and industrial markets. Cirrus Logic has a market cap of $2.56 billion and is part of the technology sector. The company has a P/E ratio of 31.5, equal to the average electronics industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 147.4% year to date as of the close of trading on Tuesday. Currently there are seven analysts that rate Cirrus Logic a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Cirrus Logic as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance 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 negative front, A123 Systems ( AONE), down 33.3%, Lime Energy ( LIME), down 10.8%, Nationstar Mortgage Holdings ( NSM), down 9.6%, and Corning ( GLW), down 9.4%, were all laggards within the electronics industry with Broadcom Corporation ( BRCM) 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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