Analog Devices Inc (ADI): 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.

Analog Devices ( ADI) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day down 1.7%. By the end of trading, Analog Devices fell 71 cents (-1.8%) to $39.74 on average volume. Throughout the day, 1.6 million shares of Analog Devices exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in price between $39.66-$40.72 after having opened the day at $40.50 as compared to the previous trading day's close of $40.45. Other companies within the Electronics industry that declined today were: Netlist ( NLST), down 24.9%, Trina Solar ( TSL), down 19.1%, Advanced Photonix ( API), down 16.4%, and Oclaro ( OCLR), down 11.2%.
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Analog Devices, Inc. engages in the design, manufacture, and marketing of analog, mixed-signal, and digital signal processing integrated circuits (ICs) used in industrial, automotive, consumer, and communication applications. Analog Devices has a market cap of $12.03 billion and is part of the technology sector. The company has a P/E ratio of 18.8, above the S&P 500 P/E ratio of 17.7. Shares are up 12.5% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Analog Devices a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Analog Devices 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, increase in stock price during the past year, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Superconductor Technologies ( SCON), up 7.6%, LightPath Technologies ( LPTH), up 7.1%, Sypris Solutions ( SYPR), up 5.9%, and BTU International ( BTUI), up 5.8%, were all gainers within the electronics industry with Xilinx ( XLNX) 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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