Cirrus Logic Inc. (CRUS): Today's Featured Technology 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.

Cirrus Logic ( CRUS) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.4%. By the end of trading, Cirrus Logic fell 55 cents (-2.4%) to $22.47 on average volume. Throughout the day, 4.2 million shares of Cirrus Logic exchanged hands as compared to its average daily volume of 3.3 million shares. The stock ranged in price between $22.04-$23.20 after having opened the day at $23.07 as compared to the previous trading day's close of $23.02. Other companies within the Technology sector that declined today were: RELM Wireless Corporation ( RWC), down 11.9%, Sohu.com ( SOHU), down 11.1%, Wave Systems Corporation ( WAVX), down 8.8%, and Crossroads Systems ( CRDS), down 8.6%.
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Cirrus Logic, Inc., a fabless semiconductor company, develops signal processing integrated circuits (ICs) for audio and energy markets. Cirrus Logic has a market cap of $1.46 billion and is part of the electronics industry. The company has a P/E ratio of 9.7, below the S&P 500 P/E ratio of 17.7. Shares are down 21.5% year to date as of the close of trading on Tuesday. Currently there are seven analysts that rate Cirrus Logic a buy, no analysts rate it a sell, and two rate it a hold.

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

On the positive front, Deltathree ( DDDC), up 30%, Towerstream Corporation ( TWER), up 14.1%, magicJack VocalTec ( CALL), up 12.4%, and Park City Group ( PCYG), up 11.8%, were all gainers within the technology sector with Dell ( DELL) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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