Texas Instruments Inc. (TXN): 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.

Texas Instruments ( TXN) pushed the Electronics industry higher today making it today's featured electronics winner. The industry as a whole closed the day up 0.1%. By the end of trading, Texas Instruments rose 37 cents (1.3%) to $29.51 on average volume. Throughout the day, 11.2 million shares of Texas Instruments exchanged hands as compared to its average daily volume of nine million shares. The stock ranged in a price between $29-$29.90 after having opened the day at $29.13 as compared to the previous trading day's close of $29.14. Other companies within the Electronics industry that increased today were: Renewable Energy Trade Board ( EBOD), up 11.7%, Advanced Photonix ( API), up 11.4%, Aehr Test Systems ( AEHR), up 10.9%, and eMagin Corporation ( EMAN), up 8.7%.
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Texas Instruments Incorporated engages in the design and sale of semiconductors to electronics designers and manufacturers worldwide. Texas Instruments has a market cap of $32.83 billion and is part of the technology sector. The company has a P/E ratio of 19.1, above the S&P 500 P/E ratio of 17.7. Shares are up 0.6% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Texas Instruments a buy, four analysts rate it a sell, and 20 rate it a hold.

TheStreet Ratings rates Texas Instruments as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Pulse Electronics ( PULS), down 22.2%, SMTC Corporation ( SMTX), down 11.3%, Spreadtrum Communications ( SPRD), down 8.9%, and Diodes ( DIOD), down 8.1%, were all laggards within the electronics industry with NVIDIA Corporation ( NVDA) 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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