Electronics Industry's Featured Straggler Of The Day: NVIDIA Corporation (NVDA)

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.

NVIDIA Corporation ( NVDA) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day down 0.6%. By the end of trading, NVIDIA Corporation fell 14 cents (-1.1%) to $12.28 on average volume. Throughout the day, 9.1 million shares of NVIDIA Corporation exchanged hands as compared to its average daily volume of 10.7 million shares. The stock ranged in price between $12.20-$12.45 after having opened the day at $12.42 as compared to the previous trading day's close of $12.41. Other companies within the Electronics industry that declined today were: Uni-pixel ( UNXL), down 8.6%, Daystar Technologies ( DSTI), down 7.3%, Netlist ( NLST), down 7.2%, and Mindspeed Technologies ( MSPD), down 6.8%.
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NVIDIA Corporation, a visual computing company, develops graphics chips for use in personal computers (PC), mobile devices, and supercomputers. The company operates through two segments, GPU and Tegra Processors. NVIDIA Corporation has a market cap of $7.9 billion and is part of the technology sector. The company has a P/E ratio of 14.3, below the S&P 500 P/E ratio of 17.7. Shares are up 1.2% year to date as of the close of trading on Monday. Currently there are seven analysts that rate NVIDIA Corporation a buy, two analysts rate it a sell, and 19 rate it a hold.

TheStreet Ratings rates NVIDIA Corporation as a buy. 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, attractive valuation levels, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, 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%, were all gainers within the electronics industry with Mellanox Technologies ( MLNX) 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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