Broadcom Corporation (BRCM): 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.

Broadcom Corporation ( BRCM) pushed the Electronics industry higher today making it today's featured electronics winner. The industry as a whole closed the day up 0.8%. By the end of trading, Broadcom Corporation rose 59 cents (1.9%) to $32.17 on average volume. Throughout the day, 7.1 million shares of Broadcom Corporation exchanged hands as compared to its average daily volume of seven million shares. The stock ranged in a price between $31.60-$32.30 after having opened the day at $31.72 as compared to the previous trading day's close of $31.58. Other companies within the Electronics industry that increased today were: Oclaro ( OCLR), up 25.6%, Anadigics ( ANAD), up 20.9%, Geospace Technologies ( GEOS), up 19.4%, and OYO Geospace Corporation ( OYOG), up 19.4%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Broadcom Corporation designs and develops semiconductor solutions for wired and wireless communications. It provides a portfolio of system-on-a-chip (SoC) and software solutions. Broadcom Corporation has a market cap of $15.97 billion and is part of the technology sector. The company has a P/E ratio of 19.5, above the S&P 500 P/E ratio of 17.7. Shares are up 6.2% year to date as of the close of trading on Friday. Currently there are 33 analysts that rate Broadcom Corporation a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Broadcom 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, good cash flow from operations, expanding profit margins and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Pulse Electronics ( PULS), down 23.3%, Eltek ( ELTK), down 9.8%, Vimicro International Corporation ( VIMC), down 7%, and Advanced Photonix ( API), down 6.7%, were all laggards within the electronics industry with TE Connectivity ( TEL) 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).

FREE for a limited time only: Get TheStreet Ratings #1 Stock Report NOW!.
null