Avago Technologies Ltd (AVGO): 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.

Avago Technologies ( AVGO) pushed the Electronics industry higher today making it today's featured electronics winner. The industry as a whole closed the day down 0.9%. By the end of trading, Avago Technologies rose 48 cents (1.4%) to $35.05 on average volume. Throughout the day, 2.5 million shares of Avago Technologies exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in a price between $34.48-$35.33 after having opened the day at $34.49 as compared to the previous trading day's close of $34.57. Other companies within the Electronics industry that increased today were: Digital Power Corporation ( DPW), up 15.4%, Freescale Semiconductor ( FSL), up 14.8%, Himax Technologies ( HIMX), up 11.4%, and Trio-Tech International ( TRT), up 11.1%.
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Avago Technologies Limited engages in the design, development, and supply of analog semiconductor devices with a focus on III-V based products. Avago Technologies has a market cap of $8.47 billion and is part of the technology sector. The company has a P/E ratio of 15.3, below the S&P 500 P/E ratio of 17.7. Shares are up 8.9% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Avago Technologies a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Avago Technologies as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and growth in earnings per share. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Renewable Energy Trade Board ( EBOD), down 23.8%, CEVA ( CEVA), down 13.3%, Ambarella ( AMBA), down 11.8%, and Spansion Inc Class A ( CODE), down 10.9%, were all laggards within the electronics industry with Corning ( GLW) 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).

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