ASML Holding NV (ASML): 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.

ASML ( ASML) pushed the Electronics industry higher today making it today's featured electronics winner. The industry as a whole closed the day up 0.6%. By the end of trading, ASML rose 93 cents (1.6%) to $57.50 on light volume. Throughout the day, 1.5 million shares of ASML exchanged hands as compared to its average daily volume of 3.2 million shares. The stock ranged in a price between $56.71-$57.54 after having opened the day at $56.78 as compared to the previous trading day's close of $56.57. Other companies within the Electronics industry that increased today were: Aehr Test Systems ( AEHR), up 17.9%, LDK Solar Company ( LDK), up 12.6%, Rudolph Technologies ( RTEC), up 7.8%, and SunPower Corporation ( SPWR), up 7.6%.
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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 $22.98 billion and is part of the technology sector. The company has a P/E ratio of 76.1, above the S&P 500 P/E ratio of 17.7. Shares are up 35.4% year to date as of the close of trading on Monday. Currently there are eight analysts that rate ASML a buy, no analysts rate it a sell, and three 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, good cash flow from operations, 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 negative front, Sypris Solutions ( SYPR), down 34.5%, eMagin Corporation ( EMAN), down 18.5%, Oclaro ( OCLR), down 15.3%, and Nationstar Mortgage Holdings ( NSM), down 10.2%, were all laggards within the electronics industry with Advanced Micro Devices ( AMD) 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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