Broadcom Corporation (BRCM): 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.

Broadcom Corporation ( BRCM) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day down 0.3%. By the end of trading, Broadcom Corporation fell $1.09 (-3.3%) to $32.27 on heavy volume. Throughout the day, 15.8 million shares of Broadcom Corporation exchanged hands as compared to its average daily volume of 6.6 million shares. The stock ranged in price between $32.03-$34.30 after having opened the day at $34.16 as compared to the previous trading day's close of $33.36. Other companies within the Electronics industry that declined today were: 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%.
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Broadcom Corporation designs and develops semiconductor solutions for wired and wireless communications. It provides a portfolio of system-on-a-chip (SoC) and software solutions. Broadcom Corporation has a market cap of $16.94 billion and is part of the technology sector. The company has a P/E ratio of 20.6, below the average electronics industry P/E ratio of 24.4 and above the S&P 500 P/E ratio of 17.7. Shares are up 13.8% year to date as of the close of trading on Tuesday. Currently there are 31 analysts that rate Broadcom Corporation a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Broadcom Corporation 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 and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, 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%, were all gainers within the electronics industry with Cirrus Logic ( CRUS) 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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