Cree Inc. (CREE): Today's Featured Technology 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.

Cree ( CREE) pushed the Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day down 0.5%. By the end of trading, Cree rose 85 cents (1.6%) to $53.50 on average volume. Throughout the day, 2.7 million shares of Cree exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in a price between $51.34-$54.28 after having opened the day at $51.73 as compared to the previous trading day's close of $52.65. Other companies within the Technology sector that increased today were: Pulse Electronics ( PULS), up 29.2%, Chyron Corporation ( CHYR), up 26.7%, Plug Power ( PLUG), up 21.7%, and Dataram Corporation ( DRAM), up 15.6%.
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Cree, Inc. develops and manufactures lighting-class light emitting diode (LED) products, lighting products, and semiconductor products for power and radio-frequency (RF) applications. Cree has a market cap of $6.23 billion and is part of the electronics industry. The company has a P/E ratio of 111.4, above the S&P 500 P/E ratio of 17.7. Shares are up 54.9% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Cree a buy, four analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Cree as a hold. 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 and increase in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

On the negative front, e-Future Information Technology ( EFUT), down 17.3%, UTStarcom Holdings ( UTSI), down 15.3%, Mind C.T.I ( MNDO), down 10.6%, and LDK Solar Company ( LDK), down 10.6%, were all laggards within the technology sector with Sap AG ADR ( SAP) being today's technology sector laggard.

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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