Cirrus Logic Inc. (CRUS): 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.

Cirrus Logic ( CRUS) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 1.7%. By the end of trading, Cirrus Logic fell $4.64 (-11.4%) to $36.14 on heavy volume. Throughout the day, 17.4 million shares of Cirrus Logic exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in price between $34.12-$37.74 after having opened the day at $36.95 as compared to the previous trading day's close of $40.78. Other companies within the Electronics industry that declined today were: Faro Technologies ( FARO), down 18.2%, Aetrium Incorporated ( ATRM), down 12.5%, Advanced Photonix ( API), down 9.4%, and Dynasil Corporation of America ( DYSL), down 8.3%.
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Cirrus Logic, Inc., a fabless semiconductor company, develops signal processing integrated circuits (ICs) for audio and energy markets. Cirrus Logic has a market cap of $2.57 billion and is part of the technology sector. The company has a P/E ratio of 31.6, above the S&P 500 P/E ratio of 17.7. Shares are up 150.9% year to date as of the close of trading on Wednesday. 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 positive front, Newport Corporation ( NEWP), up 16.8%, Pulse Electronics ( PULS), up 16.4%, GigOptix ( GIG), up 12.2%, and PLX Technology ( PLXT), up 12%, were all gainers within the electronics industry with Intel ( INTC) 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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