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 1.1%. By the end of trading, Broadcom Corporation fell 33 cents (-1.1%) to $30.62 on average volume. Throughout the day, 8.1 million shares of Broadcom Corporation exchanged hands as compared to its average daily volume of 6.8 million shares. The stock ranged in price between $30.58-$31.39 after having opened the day at $31.17 as compared to the previous trading day's close of $30.95. Other companies within the Electronics industry that declined today were: Pulse Electronics ( PULS), down 40.8%, Enphase Energy ( ENPH), down 25.3%, Giga-tronics ( GIGA), down 11.8%, and Rubicon Technology ( RBCN), down 9.4%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $16.07 billion and is part of the technology sector. The company has a P/E ratio of 19.6, above the S&P 500 P/E ratio of 17.7. Shares are up 6.9% year to date as of the close of trading on Wednesday. Currently there are 33 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, good cash flow from operations 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, Sequans Communications SA ADR ( SQNS), up 18.6%, Aeroflex ( ARX), up 16.5%, EZChip Semiconductor ( EZCH), up 14.6%, and Nexxus Lighting ( NEXS), up 14.6%, were all gainers within the electronics industry with Mellanox Technologies ( MLNX) 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).

FREE for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!.
null

If you liked this article you might like

Fedex, Apple Are on a Roll Explains Jim Cramer

Cramer: These Stocks Are Playing Catch-Up

Toshiba Reportedly Favoring Broadcom in Flash Business Sale

Bank Earnings Are at a Critical Turning Point: Cramer's 'Mad Money' Recap (Wednesday 4/12/17)