Analog Devices Inc (ADI): 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.

Analog Devices ( ADI) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Analog Devices fell 77 cents (-1.8%) to $42.52 on heavy volume. Throughout the day, 3.4 million shares of Analog Devices exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in price between $42.43-$43.29 after having opened the day at $43.23 as compared to the previous trading day's close of $43.29. Other companies within the Electronics industry that declined today were: Winland Electronics ( WEX), down 12.5%, Silicon Image ( SIMG), down 10.8%, Trina Solar ( TSL), down 7%, and New Energy Systems Group ( NEWN), down 6.5%.
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Analog Devices, Inc. engages in the design, manufacture, and marketing of analog, mixed-signal, and digital signal processing integrated circuits (ICs) for use in industrial, automotive, consumer, and communication markets worldwide. Analog Devices has a market cap of $13.26 billion and is part of the technology sector. The company has a P/E ratio of 20.7, above the S&P 500 P/E ratio of 17.7. Shares are up 4.6% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Analog Devices a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Analog Devices 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, good cash flow from operations, solid stock price performance, expanding profit margins and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Uni-pixel ( UNXL), up 20.2%, LDK Solar Company ( LDK), up 11.5%, SolarCity ( SCTY), up 10.6%, and Netlist ( NLST), up 10.2%, were all gainers within the electronics industry with Agilent Technologies ( A) 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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