NVIDIA Corporation (NVDA): 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.

NVIDIA Corporation ( NVDA) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 0.1%. By the end of trading, NVIDIA Corporation fell 49 cents (-3.9%) to $12.19 on heavy volume. Throughout the day, 21.1 million shares of NVIDIA Corporation exchanged hands as compared to its average daily volume of 10.1 million shares. The stock ranged in price between $12.15-$12.90 after having opened the day at $12.75 as compared to the previous trading day's close of $12.68. Other companies within the Electronics industry that declined today were: Pulse Electronics ( PULS), down 22.2%, SMTC Corporation ( SMTX), down 11.3%, Spreadtrum Communications ( SPRD), down 8.9%, and Diodes ( DIOD), down 8.1%.
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NVIDIA Corporation provides graphics chips for use in smartphones, personal computers (PC), tablets, and professional workstations markets worldwide. It operates in three segments: Graphic Processing Unit (GPU), Professional Solutions Business (PSB), and Consumer Products Business (CPB). NVIDIA Corporation has a market cap of $7.81 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 down 9% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate NVIDIA Corporation a buy, one analyst rates it a sell, and 19 rate it a hold.

TheStreet Ratings rates NVIDIA 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, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, 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%, were all gainers within the electronics industry with Texas Instruments ( TXN) 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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