NVIDIA Corporation (NVDA): Today's Featured Technology 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 Technology sector lower today making it today's featured Technology laggard. The sector as a whole was unchanged today. By the end of trading, NVIDIA Corporation fell 22 cents (-1.8%) to $11.98 on average volume. Throughout the day, 9.3 million shares of NVIDIA Corporation exchanged hands as compared to its average daily volume of 11.1 million shares. The stock ranged in price between $11.91-$12.14 after having opened the day at $12.14 as compared to the previous trading day's close of $12.20. Other companies within the Technology sector that declined today were: Majesco Entertainment Company ( COOL), down 29.8%, Multi-Fineline Electronix ( MFLX), down 22.9%, TTM Technologies ( TTMI), down 18.9%, and Meade Instruments Corporation ( MEAD), down 18.1%.
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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 $7.63 billion and is part of the electronics industry. The company has a P/E ratio of 15.3, below the S&P 500 P/E ratio of 17.7. Shares are down 0.4% year to date as of the close of trading on Monday. Currently there are eight analysts that rate NVIDIA Corporation a buy, one analyst rates it a sell, and 18 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, Deltathree ( DDDC), up 42.9%, Egain Communications Corporation ( EGAN), up 24.6%, Radcom ( RDCM), up 15.4%, and Radisys Corporation ( RSYS), up 13.3%, were all gainers within the technology sector with Advanced Micro Devices ( AMD) being today's featured technology sector leader.

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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