NVIDIA Corporation (NVDA): 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.

NVIDIA Corporation ( NVDA) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 0.9%. By the end of trading, NVIDIA Corporation fell 13 cents (-1%) to $12.52 on average volume. Throughout the day, 10 million shares of NVIDIA Corporation exchanged hands as compared to its average daily volume of 10.9 million shares. The stock ranged in price between $12.47-$12.76 after having opened the day at $12.69 as compared to the previous trading day's close of $12.65. Other companies within the Electronics industry that declined today were: Mattson Technology ( MTSN), down 11%, Aehr Test Systems ( AEHR), down 8.2%, Plug Power ( PLUG), down 6.1%, and Geospace Technologies ( GEOS), down 5.2%.
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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 $7.72 billion and is part of the technology sector. The company has a P/E ratio of 15.4, below the S&P 500 P/E ratio of 17.7. Shares are down 10.8% year to date as of the close of trading on Tuesday. Currently there are eight 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 hold. 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 and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

On the positive front, Daystar Technologies ( DSTI), up 41%, ReneSola ( SOL), up 31.7%, Daqo New Energy ( DQ), up 31.3%, and Spire Corporation ( SPIR), up 29.2%, 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).

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