NVIDIA Corporation (NVDA): 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.

NVIDIA Corporation ( NVDA) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.1%. By the end of trading, NVIDIA Corporation fell 21 cents (-1.8%) to $11.38 on average volume. Throughout the day, 15.3 million shares of NVIDIA Corporation exchanged hands as compared to its average daily volume of 10.7 million shares. The stock ranged in price between $11.15-$11.63 after having opened the day at $11.59 as compared to the previous trading day's close of $11.59. Other companies within the Technology sector that declined today were: Net Element International ( NETE), down 38.7%, XRS ( XRSC), down 31.5%, Recon Technology ( RCON), down 29.4%, and Sycamore Networks ( SCMR), down 21.5%.
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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 $7.15 billion and is part of the electronics industry. The company has a P/E ratio of 14.1, below the S&P 500 P/E ratio of 17.7. Shares are down 16.7% year to date as of the close of trading on Thursday. Currently there are nine 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, attractive valuation levels, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, New Energy Systems Group ( NEWN), up 22.5%, Chyron Corporation ( CHYR), up 20.7%, OSI Systems ( OSIS), up 16.5%, and Oclaro ( OCLR), up 15.2%, were all gainers within the technology sector with Cognizant Technology Solutions Corporation ( CTSH) 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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