Altera Corp. (ALTR): 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.

Altera ( ALTR) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Altera fell $1.17 (-3.6%) to $31.01 on heavy volume. Throughout the day, 7.7 million shares of Altera exchanged hands as compared to its average daily volume of 3.9 million shares. The stock ranged in price between $30.89-$31.83 after having opened the day at $31.49 as compared to the previous trading day's close of $32.18. Other companies within the Electronics industry that declined today were: ClearSign Combustion ( CLIR), down 14%, Superconductor Technologies ( SCON), down 8.2%, Transcat ( TRNS), down 7.9%, and Spire Corporation ( SPIR), down 6.5%.
  • 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.

Altera Corporation, a semiconductor company, designs, manufactures, and markets programmable logic devices (PLD), HardCopy application-specific integrated circuit (ASIC) devices, pre-defined design building blocks, and associated development tools. Altera has a market cap of $10.33 billion and is part of the technology sector. The company has a P/E ratio of 18, above the S&P 500 P/E ratio of 17.7. Shares are down 13.1% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Altera a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Altera 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, expanding profit margins, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the positive front, Renewable Energy Trade Board ( EBOD), up 101.8%, TranSwitch Corporation ( TXCC), up 15.1%, Axcelis Technologies ( ACLS), up 12%, and Intevac ( IVAC), up 12%, were all gainers within the electronics industry with Corning ( GLW) 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).

Holiday Special: Subscribe to Action Alerts PLUS to see how Jim Cramer trades his $2.5 Million+ portfolio for 51% off the list price. Your first 14-days are FREE: Sign up today to get e-mail alerts before every trade.
null