NVIDIA Corporation (NVDA): Today's Featured Electronics Winner

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 higher today making it today's featured electronics winner. The industry as a whole was unchanged today. By the end of trading, NVIDIA Corporation rose 20 cents (1.6%) to $12.61 on average volume. Throughout the day, 10.5 million shares of NVIDIA Corporation exchanged hands as compared to its average daily volume of 11 million shares. The stock ranged in a price between $12.44-$12.69 after having opened the day at $12.47 as compared to the previous trading day's close of $12.41. Other companies within the Electronics industry that increased today were: Advanced Photonix ( API), up 20%, Transcat ( TRNS), up 9.2%, Lattice Semiconductor Corporation ( LSCC), up 6.9%, and Netlist ( NLST), up 6.8%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $7.62 billion and is part of the technology sector. The company has a P/E ratio of 15.2, below the S&P 500 P/E ratio of 17.7. Shares are down 0.6% year to date as of the close of trading on Friday. 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 negative front, Perceptron ( PRCP), down 11.1%, Uni-pixel ( UNXL), down 9.1%, New Energy Systems Group ( NEWN), down 8%, and Nam Tai Electronics ( NTE), down 7.7%, were all laggards within the electronics industry with Jabil Circuit ( JBL) being today's electronics industry laggard.

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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null