KLA-Tencor Corporation (KLAC): 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.

KLA-Tencor Corporation ( KLAC) pushed the Electronics industry higher today making it today's featured electronics winner. The industry as a whole closed the day down 0.3%. By the end of trading, KLA-Tencor Corporation rose $1.36 (2.9%) to $47.60 on average volume. Throughout the day, 2.7 million shares of KLA-Tencor Corporation exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in a price between $46.84-$48 after having opened the day at $47.05 as compared to the previous trading day's close of $46.24. Other companies within the Electronics industry that increased today were: Pulse Electronics ( PULS), up 35.8%, LDK Solar Company ( LDK), up 20%, Parkervision ( PRKR), up 10.5%, and China Sunergy ( CSUN), up 7.9%.
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KLA-Tencor Corporation designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nanoelectronics industries. KLA-Tencor Corporation has a market cap of $7.6 billion and is part of the technology sector. The company has a P/E ratio of 11.1, below the S&P 500 P/E ratio of 17.7. Shares are down 4.2% year to date as of the close of trading on Friday. Currently there are seven analysts that rate KLA-Tencor Corporation a buy, three analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates KLA-Tencor Corporation 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, attractive valuation levels, 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 somewhat weak growth in earnings per share.

On the negative front, Aehr Test Systems ( AEHR), down 13.7%, Zygo Corporation ( ZIGO), down 10.9%, eMagin Corporation ( EMAN), down 10.5%, and Enphase Energy ( ENPH), down 8.7%, were all laggards within the electronics industry with SanDisk ( SNDK) 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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