Broadcom Corporation (BRCM): 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.

Broadcom Corporation ( BRCM) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole was unchanged today. By the end of trading, Broadcom Corporation fell $1.21 (-3.6%) to $32.06 on heavy volume. Throughout the day, 14.1 million shares of Broadcom Corporation exchanged hands as compared to its average daily volume of 7.4 million shares. The stock ranged in price between $31.71-$32.64 after having opened the day at $32.63 as compared to the previous trading day's close of $33.27. Other companies within the Electronics industry that declined today were: Uni-pixel ( UNXL), down 9.8%, Revolution Lighting Technologies ( RVLT), down 8.9%, Avago Technologies ( AVGO), down 7.6%, and Cirrus Logic ( CRUS), down 6.7%.
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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 $17.58 billion and is part of the technology sector. The company has a P/E ratio of 21.5, above the S&P 500 P/E ratio of 17.7. Shares are up 17% year to date as of the close of trading on Thursday. 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 positive front, GigOptix ( GIG), up 26.1%, Neonode ( NEON), up 12.1%, Digital Power Corporation ( DPW), up 10.3%, and Enphase Energy ( ENPH), up 9.2%, were all gainers within the electronics industry with ASML ( ASML) 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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