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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 47 points (-0.4%) at 12,708 as of Wednesday, Nov. 14, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 733 issues advancing vs. 2,191 declining with 116 unchanged.

The Electronics industry currently sits down 0.5% versus the S&P 500, which is down 0.3%. On the negative front, top decliners within the industry include Amphenol ( APH), down 1.2%, and Taiwan Semiconductor Manufacturing ( TSM), down 1.1%.

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

3. KLA-Tencor Corporation ( KLAC) is one of the companies pushing the Electronics industry lower today. As of noon trading, KLA-Tencor Corporation is down $0.54 (-1.2%) to $45.54 on average volume Thus far, 1.2 million shares of KLA-Tencor Corporation exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $45.25-$46.68 after having opened the day at $46.50 as compared to the previous trading day's close of $46.07.

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 $7.9 billion and is part of the technology sector. The company has a P/E ratio of 11.6, below the S&P 500 P/E ratio of 17.7. Shares are down 4.5% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate KLA-Tencor Corporation a buy, 2 analysts rate it a sell, and 2 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. Get the full KLA-Tencor Corporation Ratings Report now.

2. As of noon trading, Mellanox Technologies ( MLNX) is down $2.60 (-3.0%) to $84.30 on light volume Thus far, 468,842 shares of Mellanox Technologies exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $82.79-$89.82 after having opened the day at $87.10 as compared to the previous trading day's close of $86.90.

Mellanox technologies, Ltd., a fabless semiconductor company, produces and supplies interconnect products for computing, storage, and communication applications in the computing, Web 2.0, storage, financial services, database, and cloud markets. Mellanox Technologies has a market cap of $3.6 billion and is part of the technology sector. The company has a P/E ratio of 27.5, above the S&P 500 P/E ratio of 17.7. Shares are up 158.7% year to date as of the close of trading on Tuesday. Currently there are 5 analysts that rate Mellanox Technologies a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Mellanox Technologies as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full Mellanox Technologies Ratings Report now.

1. As of noon trading, Corning ( GLW) is down $0.05 (-0.5%) to $11.02 on light volume Thus far, 4.9 million shares of Corning exchanged hands as compared to its average daily volume of 13.9 million shares. The stock has ranged in price between $10.96-$11.19 after having opened the day at $11.11 as compared to the previous trading day's close of $11.07.

Corning Incorporated produces specialty glasses, ceramics, and related materials worldwide. The company operates in five segments: Display Technologies, Telecommunications, Environmental Technologies, Specialty Materials, and Life Sciences. Corning has a market cap of $16.7 billion and is part of the technology sector. The company has a P/E ratio of 8.9, below the S&P 500 P/E ratio of 17.7. Shares are down 13.2% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Corning a buy, 3 analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Corning 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 and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity. Get the full Corning Ratings Report now.

If you are interested in one of these 5 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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