Cirrus Logic Inc. (CRUS): 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.

Cirrus Logic ( CRUS) pushed the Electronics industry higher today making it today's featured electronics winner. The industry as a whole was unchanged today. By the end of trading, Cirrus Logic rose 32 cents (1.4%) to $23.28 on average volume. Throughout the day, 2.6 million shares of Cirrus Logic exchanged hands as compared to its average daily volume of 3.2 million shares. The stock ranged in a price between $22.81-$23.32 after having opened the day at $23.12 as compared to the previous trading day's close of $22.96. Other companies within the Electronics industry that increased today were: Aehr Test Systems ( AEHR), up 28.9%, Plug Power ( PLUG), up 24.4%, Lattice Semiconductor Corporation ( LSCC), up 10.9%, and Aetrium Incorporated ( ATRM), up 8.1%.
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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 $1.51 billion and is part of the technology sector. The company has a P/E ratio of 10, below the S&P 500 P/E ratio of 17.7. Shares are down 20.7% year to date as of the close of trading on Monday. Currently there are six 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, increase in net income, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Memsic ( MEMS), down 15.2%, Oclaro ( OCLR), down 8.7%, Suntech Power Holdings ( STP), down 8.6%, and Digital Power Corporation ( DPW), down 8.3%, 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).

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