Texas Instruments Inc. (TXN): Technology's Featured Stock Of The Day

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 Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day up 0.3%. By the end of trading, Texas Instruments rose 62 cents (1.8%) to $35.10 on average volume. Throughout the day, 6.9 million shares of Texas Instruments exchanged hands as compared to its average daily volume of 9.1 million shares. The stock ranged in a price between $34.62-$35.11 after having opened the day at $34.74 as compared to the previous trading day's close of $34.48. Other companies within the Technology sector that increased today were: SemiLEDs ( LEDS), up 26.6%, LogMeIn ( LOGM), up 19.6%, Dialogic ( DLGC), up 15.3%, and Revolution Lighting Technologies ( RVLT), up 13.6%.
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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 $38.13 billion and is part of the electronics industry. The company has a P/E ratio of 22.8, above the S&P 500 P/E ratio of 17.7. Shares are up 11.6% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Texas Instruments a buy, five analysts rate it a sell, and 16 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, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year 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 negative front, New Energy Systems Group ( NEWN), down 11.6%, TranSwitch Corporation ( TXCC), down 11.6%, Overland Storage ( OVRL), down 10.2%, and Crexendo ( EXE), down 10.1%, were all laggards within the technology sector with First Solar ( FSLR) 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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