Advanced Micro Devices Inc (AMD): 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.

Advanced Micro Devices ( AMD) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Advanced Micro Devices fell 4 cents (-1.9%) to $2.07 on average volume. Throughout the day, 23.9 million shares of Advanced Micro Devices exchanged hands as compared to its average daily volume of 26.6 million shares. The stock ranged in price between $2.06-$2.14 after having opened the day at $2.12 as compared to the previous trading day's close of $2.11. Other companies within the Electronics industry that declined today were: 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%.
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Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. The company designs, develops, and sells microprocessor products, such as central processing unit (CPU) and accelerated processing unit (APU) for servers, desktop personal computers (PCs), and mobile devices. Advanced Micro Devices has a market cap of $1.5 billion and is part of the technology sector. The company has a P/E ratio of -1.8, below the S&P 500 P/E ratio of 17.7. Shares are down 60.9% year to date as of the close of trading on Monday. Currently there are four analysts that rate Advanced Micro Devices a buy, four analysts rate it a sell, and 17 rate it a hold.

TheStreet Ratings rates Advanced Micro Devices as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself.

On the positive front, 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%, were all gainers within the electronics industry with ASML ( ASML) 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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