Cirrus Logic Inc. (CRUS): 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.

Cirrus Logic ( CRUS) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Cirrus Logic fell 96 cents (-3.1%) to $29.77 on average volume. Throughout the day, 3.5 million shares of Cirrus Logic exchanged hands as compared to its average daily volume of 3.1 million shares. The stock ranged in price between $29.35-$30.96 after having opened the day at $30.75 as compared to the previous trading day's close of $30.73. Other companies within the Electronics industry that declined today were: Trio-Tech International ( TRT), down 12.3%, SemiLEDs ( LEDS), down 9.9%, Parkervision ( PRKR), down 9.1%, and Data I/O Corporation ( DAIO), down 7%.
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Cirrus Logic, Inc., a fabless semiconductor company, develops signal processing integrated circuits (ICs) for audio and energy markets. Cirrus Logic has a market cap of $2.05 billion and is part of the technology sector. The company has a P/E ratio of 19.6, above the S&P 500 P/E ratio of 17.7. Shares are up 93.9% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Cirrus Logic a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Cirrus Logic 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, increase in net income, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Superconductor Technologies ( SCON), up 19.3%, Revolution Lighting Technologies ( RVLT), up 13.3%, Inphi ( IPHI), up 11.8%, and Meade Instruments Corporation ( MEAD), up 8.3%, were all gainers within the electronics industry with Applied Materials ( AMAT) 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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