Texas Instruments Inc. (TXN): 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.

Texas Instruments ( TXN) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day down 0.8%. By the end of trading, Texas Instruments fell 46 cents (-1.3%) to $34.62 on average volume. Throughout the day, nine million shares of Texas Instruments exchanged hands as compared to its average daily volume of nine million shares. The stock ranged in price between $34.21-$34.98 after having opened the day at $34.21 as compared to the previous trading day's close of $35.08. Other companies within the Electronics industry that declined today were: LDK Solar Company ( LDK), down 10.6%, Parkervision ( PRKR), down 8.8%, ReneSola ( SOL), down 8.6%, and Ambarella ( AMBA), down 8.4%.
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Texas Instruments Incorporated engages in the design, manufacture, sale of semiconductors to electronics designers and manufacturers worldwide. The company operates in four segments: Analog, Embedded Processing, Wireless, and Other. Texas Instruments has a market cap of $39.15 billion and is part of the technology sector. The company has a P/E ratio of 23.4, above the S&P 500 P/E ratio of 17.7. Shares are up 13.6% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Texas Instruments a buy, five analysts rate it a sell, and 17 rate it a hold.

TheStreet Ratings rates Texas Instruments as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures 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, Pulse Electronics ( PULS), up 29.2%, Plug Power ( PLUG), up 21.7%, Planar Systems ( PLNR), up 7.3%, and GigOptix ( GIG), up 6.5%, were all gainers within the electronics industry with First Solar ( FSLR) 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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