Garmin Ltd. (GRMN): 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.

Garmin ( GRMN) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Garmin fell 63 cents (-1.6%) to $38.89 on average volume. Throughout the day, 1.8 million shares of Garmin exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in price between $38.63-$39.82 after having opened the day at $39.61 as compared to the previous trading day's close of $39.52. Other companies within the Electronics industry that declined today were: Aehr Test Systems ( AEHR), down 10.3%, II-VI ( IIVI), down 9.5%, Sequans Communications SA ADR ( SQNS), down 7.8%, and Plug Power ( PLUG), down 7.2%.
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Garmin Ltd., together with its subsidiaries, designs, develops, manufactures, and markets global positioning system (GPS) enabled products and other navigation, communication, and information products for the automotive/mobile, outdoor, fitness, marine, and general aviation markets worldwide. Garmin has a market cap of $8.22 billion and is part of the technology sector. The company has a P/E ratio of 13.4, below the S&P 500 P/E ratio of 17.7. Shares are down 3% year to date as of the close of trading on Friday. Currently there are four analysts that rate Garmin a buy, one analyst rates it a sell, and five rate it a hold.

TheStreet Ratings rates Garmin 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, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Geospace Technologies ( GEOS), up 49.7%, Daqo New Energy ( DQ), up 25%, Advanced Photonix ( API), up 19.4%, and RF Industries ( RFIL), up 12.8%, 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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