KLA-Tencor Corporation (KLAC): 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.

KLA-Tencor Corporation ( KLAC) pushed the Electronics industry higher today making it today's featured electronics winner. The industry as a whole closed the day up 0.2%. By the end of trading, KLA-Tencor Corporation rose 90 cents (1.7%) to $53.92 on average volume. Throughout the day, 1.7 million shares of KLA-Tencor Corporation exchanged hands as compared to its average daily volume of two million shares. The stock ranged in a price between $53.32-$54.27 after having opened the day at $53.43 as compared to the previous trading day's close of $53.02. Other companies within the Electronics industry that increased today were: Supertex ( SUPX), up 11.9%, Aetrium Incorporated ( ATRM), up 8.1%, Spire Corporation ( SPIR), up 7.3%, and Inphi ( IPHI), up 6.4%.
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KLA-Tencor Corporation designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nanoelectronics industries. KLA-Tencor Corporation has a market cap of $9.1 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 up 14.7% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate KLA-Tencor Corporation a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates KLA-Tencor Corporation 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, reasonable valuation levels, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the negative front, Pulse Electronics ( PULS), down 10.2%, TranSwitch Corporation ( TXCC), down 7%, Digital Power Corporation ( DPW), down 6.9%, and InvenSense ( INVN), down 6.2%, were all laggards within the electronics industry with Taiwan Semiconductor Manufacturing ( TSM) 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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