Garmin Ltd. (GRMN): 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.

Garmin ( GRMN) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole was unchanged today. By the end of trading, Garmin fell 57 cents (-1.6%) to $34.68 on light volume. Throughout the day, 958,111 shares of Garmin exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in price between $34.62-$35.68 after having opened the day at $35.42 as compared to the previous trading day's close of $35.25. Other companies within the Electronics industry that declined today were: Suntech Power Holdings ( STP), down 23.9%, Sigmatron International ( SGMA), down 23.4%, MEMC Electronic Materials ( WFR), down 13.4%, and LDK Solar Company ( LDK), down 12%.
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Garmin Ltd., together with its subsidiaries, designs, develops, manufactures, and markets global positioning system (GPS) enabled products and other navigation, communication, and information products for the automotive/mobile, outdoor, fitness, marine, and general aviation markets worldwide. Garmin has a market cap of $6.99 billion and is part of the technology sector. The company has a P/E ratio of 12.9, below the S&P 500 P/E ratio of 17.7. Shares are down 12.3% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate Garmin a buy, one analyst rates it a sell, and five rate it a hold.

TheStreet Ratings rates Garmin as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Superconductor Technologies ( SCON), up 70.4%, Spire Corporation ( SPIR), up 15.9%, On Track Innovations ( OTIV), up 10.6%, and Nortech Systems Incorporated ( NSYS), up 7.4%, were all gainers within the electronics industry with Applied Materials ( AMAT) 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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