Texas Instruments Inc. (TXN): 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.

Texas Instruments ( TXN) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day down 1.4%. By the end of trading, Texas Instruments fell 45 cents (-1.3%) to $33.27 on heavy volume. Throughout the day, 16.2 million shares of Texas Instruments exchanged hands as compared to its average daily volume of 8.3 million shares. The stock ranged in price between $33.25-$33.69 after having opened the day at $33.50 as compared to the previous trading day's close of $33.72. Other companies within the Electronics industry that declined today were: Kimball International ( KBALB), down 13.5%, Trio-Tech International ( TRT), down 10.7%, Spire Corporation ( SPIR), down 8.6%, and Suntech Power Holdings ( STP), down 7.6%.
  • 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.

Texas Instruments Incorporated engages in the design and sale of semiconductors to electronics designers and manufacturers worldwide. Texas Instruments has a market cap of $37.08 billion and is part of the technology sector. The company has a P/E ratio of 21.9, above the S&P 500 P/E ratio of 17.7. Shares are up 7.1% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Texas Instruments a buy, six analysts rate it a sell, and 17 rate it a hold.

TheStreet Ratings rates Texas Instruments as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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

If you liked this article you might like

Dow, S&P 500 Set New Records as Fed Moves to Unwind Balance Sheet

Cramer: Dominoes Are in Play Today

Stocks In Negative Territory as Chances for December Hike Surge

Caterpillar Leads Dow to Records, S&P 500 Also at All-Time Highs

S&P 500 and Dow Score Records With Wall Street Upbeat Ahead of Fed