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 up 0.1%. By the end of trading, Avago Technologies rose 53 cents (1.6%) to $34.22 on average volume. Throughout the day, 3.2 million shares of Avago Technologies exchanged hands as compared to its average daily volume of 3.3 million shares. The stock ranged in a price between $33.33-$34.31 after having opened the day at $33.69 as compared to the previous trading day's close of $33.69. Other companies within the Electronics industry that increased today were: Plug Power ( PLUG), up 30.4%, Faro Technologies ( FARO), up 17.6%, Aeroflex ( ARX), up 12.5%, and Netlist ( NLST), up 11.4%.
  • 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.

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 $8.16 billion and is part of the technology sector. The company has a P/E ratio of 15.6, below the S&P 500 P/E ratio of 17.7. Shares are up 4.7% year to date as of the close of trading on Wednesday. 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 no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, Suntech Power Holdings ( STP), down 16.7%, Spire Corporation ( SPIR), down 12.2%, CGG ( CGG), down 9%, and Revolution Lighting Technologies ( RVLT), down 7.2%, were all laggards within the electronics industry with Marvell Technology Group ( MRVL) 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

If you liked this article you might like

Watch Out For the Dominoes That Fall: Cramer's 'Mad Money' Recap (Wed 9/20/17)

If You Buy Just One Tech Stock, Make It This Apple Supplier, Jim Cramer Says

John Chambers' Exit From Cisco Could Pave the Way for Big Moves

S&P 500 and Dow on Track for Records With Markets in Good Mood Ahead of Fed

Jim Cramer's Favorite Tech Stock