Mellanox Technologies Ltd. (MLNX): Electronics' Spotlighted Daily Leader

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.

Mellanox Technologies ( MLNX) pushed the Electronics industry higher today making it today's featured electronics winner. The industry as a whole closed the day down 0.6%. By the end of trading, Mellanox Technologies rose $2.08 (3.8%) to $56.55 on light volume. Throughout the day, one million shares of Mellanox Technologies exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in a price between $55.67-$58.78 after having opened the day at $55.70 as compared to the previous trading day's close of $54.47. Other companies within the Electronics industry that increased today were: Suntech Power Holdings ( STP), up 13.9%, Plug Power ( PLUG), up 13.2%, ClearSign Combustion ( CLIR), up 12.3%, and Himax Technologies ( HIMX), up 8.8%.
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Mellanox Technologies, Ltd., a fabless semiconductor company, produces and supplies semiconductor interconnect products for computing, storage, and communications applications in the high-performance computing, Web 2.0, storage, financial services, database, cloud, and embedded markets. Mellanox Technologies has a market cap of $2.39 billion and is part of the technology sector. The company has a P/E ratio of 21.9, above the S&P 500 P/E ratio of 17.7. Shares are down 8.3% year to date as of the close of trading on Monday. Currently there are five analysts that rate Mellanox Technologies a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Mellanox Technologies 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, notable return on equity, solid stock price performance and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Uni-pixel ( UNXL), down 8.6%, Daystar Technologies ( DSTI), down 7.3%, Netlist ( NLST), down 7.2%, and Mindspeed Technologies ( MSPD), down 6.8%, were all laggards within the electronics industry with NVIDIA Corporation ( NVDA) 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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