3 Stocks Pushing The Electronics Industry Lower

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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 48 points (0.4%) at 12,859 as of Friday, Nov. 9, 2012, 11:50 AM ET. The NYSE advances/declines ratio sits at 1,662 issues advancing vs. 1,212 declining with 143 unchanged.

The Electronics industry currently sits up 0.6% versus the S&P 500, which is up 0.6%. Top gainers within the industry include Applied Materials ( AMAT), up 2.1%, Texas Instruments ( TXN), up 1.7%, SanDisk ( SNDK), up 1.5% and Intel ( INTC), up 1.0%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. Spreadtrum Communications ( SPRD) is one of the companies pushing the Electronics industry lower today. As of noon trading, Spreadtrum Communications is down $2.35 (-11.0%) to $18.98 on heavy volume Thus far, 1.8 million shares of Spreadtrum Communications exchanged hands as compared to its average daily volume of 821,100 shares. The stock has ranged in price between $18.18-$19.51 after having opened the day at $19.20 as compared to the previous trading day's close of $21.33.

Spreadtrum Communications, Inc., a fabless semiconductor company, engages in the design, development, and marketing of mobile chipset platforms for smartphones, feature phones, and other consumer electronics products in the People's Republic of China and internationally. Spreadtrum Communications has a market cap of $999.1 million and is part of the technology sector. The company has a P/E ratio of 9.4, below the S&P 500 P/E ratio of 17.7. Shares are up 1.8% year to date as of the close of trading on Thursday. Currently there are 4 analysts that rate Spreadtrum Communications a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates Spreadtrum Communications 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 and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Spreadtrum Communications Ratings Report now.

2. As of noon trading, Dolby Laboratories ( DLB) is down $2.13 (-6.2%) to $31.98 on heavy volume Thus far, 1.2 million shares of Dolby Laboratories exchanged hands as compared to its average daily volume of 711,000 shares. The stock has ranged in price between $31.67-$34.15 after having opened the day at $32.25 as compared to the previous trading day's close of $34.11.

Dolby Laboratories, Inc. provides products, services, and technologies for the entertainment industry worldwide. Dolby Laboratories has a market cap of $1.6 billion and is part of the technology sector. The company has a P/E ratio of 16.6, below the S&P 500 P/E ratio of 17.7. Shares are up 11.8% year to date as of the close of trading on Thursday. Currently there are 4 analysts that rate Dolby Laboratories a buy, 2 analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Dolby Laboratories as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, deteriorating net income and feeble growth in the company's earnings per share. Get the full Dolby Laboratories Ratings Report now.

1. As of noon trading, Microchip Technology ( MCHP) is down $0.99 (-3.1%) to $30.92 on heavy volume Thus far, 2.2 million shares of Microchip Technology exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $30.84-$31.49 after having opened the day at $31.08 as compared to the previous trading day's close of $31.91.

Microchip Technology Incorporated engages in the development, manufacture, and sale of semiconductor products for embedded control applications. Microchip Technology has a market cap of $6.2 billion and is part of the technology sector. The company has a P/E ratio of 20.7, above the S&P 500 P/E ratio of 17.7. Shares are down 12.3% year to date as of the close of trading on Thursday. Currently there are 6 analysts that rate Microchip Technology a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Microchip Technology as a buy. The company's strengths can be seen in multiple areas, such as its 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 lackluster performance in the stock itself. Get the full Microchip Technology Ratings Report now.

If you are interested in one of these 3 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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