Trimble Navigation Limited (TRMB): 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.

Trimble Navigation ( TRMB) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Trimble Navigation fell $2.81 (-4.4%) to $60.69 on heavy volume. Throughout the day, 2.1 million shares of Trimble Navigation exchanged hands as compared to its average daily volume of 633,500 shares. The stock ranged in price between $60.03-$61.68 after having opened the day at $60.11 as compared to the previous trading day's close of $63.50. Other companies within the Electronics industry that declined today were: Spire Corporation ( SPIR), down 9.3%, Plug Power ( PLUG), down 9.3%, Renewable Energy Trade Board ( EBOD), down 7.7%, and GigOptix ( GIG), down 7.5%.
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Trimble Navigation Limited provides positioning, wireless, and software technology solutions. Trimble Navigation has a market cap of $7.88 billion and is part of the technology sector. The company has a P/E ratio of 42.5, above the S&P 500 P/E ratio of 17.7. Shares are up 4.5% year to date as of the close of trading on Tuesday. Currently there are eight analysts that rate Trimble Navigation a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Trimble Navigation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, Emcore Corporation ( EMKR), up 12.2%, MaxLinear ( MXL), up 11.3%, Camtek ( CAMT), up 10.5%, and On Track Innovations ( OTIV), up 10.2%, were all gainers within the electronics industry with Corning ( GLW) 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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