Broadcom Corporation (BRCM): Today's Featured Technology 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 Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day up 0.3%. By the end of trading, Broadcom Corporation rose $1.02 (3.1%) to $33.36 on heavy volume. Throughout the day, 12.4 million shares of Broadcom Corporation exchanged hands as compared to its average daily volume of 7.1 million shares. The stock ranged in a price between $32.62-$33.38 after having opened the day at $32.80 as compared to the previous trading day's close of $32.34. Other companies within the Technology sector that increased today were: B Communications ( BCOM), up 24.8%, Kingtone Wirelessinfo Solution ( KONE), up 23.9%, Meade Instruments Corporation ( MEAD), up 18.6%, and Interphase ( INPH), up 16%.
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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 $16.61 billion and is part of the electronics industry. The company has a P/E ratio of 20.3, above the S&P 500 P/E ratio of 17.7. Shares are up 10.5% year to date as of the close of trading on Wednesday. Currently there are 32 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 sub par growth in net income.

On the negative front, Webmedia Brands ( WEBM), down 24.9%, TigerLogic Corporation ( TIGR), down 15.1%, Authentidate Holding Corporation ( ADAT), down 12.3%, and OCZ Technology Group ( OCZ), down 12.2%, were all laggards within the technology sector with Jabil Circuit ( JBL) being today's technology sector laggard.

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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