Micron Technology Inc. (MU): Today's Featured Technology 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.

Micron Technology ( MU) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.1%. By the end of trading, Micron Technology fell 7 cents (-1.2%) to $5.62 on average volume. Throughout the day, 22 million shares of Micron Technology exchanged hands as compared to its average daily volume of 25.2 million shares. The stock ranged in price between $5.59-$5.80 after having opened the day at $5.69 as compared to the previous trading day's close of $5.69. Other companies within the Technology sector that declined today were: Groupon ( GRPN), down 29.6%, DTS ( DTSI), down 28.2%, Pulse Electronics ( PULS), down 22.2%, and Intellicheck Mobilisa ( IDN), down 19.2%.
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Micron Technology, Inc., together with its subsidiaries, engages in the manufacture and marketing of semiconductor devices worldwide. Micron Technology has a market cap of $6.01 billion and is part of the electronics industry. The company has a P/E ratio of -5.7, below the S&P 500 P/E ratio of 17.7. Shares are down 6% year to date as of the close of trading on Thursday. Currently there are 18 analysts that rate Micron Technology a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Micron Technology as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

On the positive front, Kayak Software Corp Class A ( KYAK), up 27.8%, Digital Generation ( DGIT), up 17.9%, SciQuest ( SQI), up 16.3%, and ACI Worldwide ( ACIW), up 12.7%, were all gainers within the technology sector with Nokia Oyj ( NOK) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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