Cree Inc. (CREE): Electronics' 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.

Cree ( CREE) pushed the Electronics industry higher today making it today's featured electronics winner. The industry as a whole closed the day down 0.4%. By the end of trading, Cree rose 82 cents (1.5%) to $54.21 on average volume. Throughout the day, 1.9 million shares of Cree exchanged hands as compared to its average daily volume of 2.5 million shares. The stock ranged in a price between $52.80-$54.67 after having opened the day at $52.94 as compared to the previous trading day's close of $53.39. Other companies within the Electronics industry that increased today were: Mattson Technology ( MTSN), up 10.6%, Aehr Test Systems ( AEHR), up 10.1%, Nortech Systems Incorporated ( NSYS), up 6.1%, and Uni-pixel ( UNXL), up 6.1%.
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Cree, Inc. develops and manufactures lighting-class light emitting diode (LED) products, lighting products, and semiconductor products for power and radio-frequency (RF) applications. Cree has a market cap of $6.26 billion and is part of the technology sector. The company has a P/E ratio of 111.8, above the S&P 500 P/E ratio of 17.7. Shares are up 58% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Cree a buy, four analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Cree as a hold. 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 and increase in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

On the negative front, Suntech Power Holdings ( STP), down 13.9%, Spire Corporation ( SPIR), down 11.8%, China Sunergy ( CSUN), down 8.3%, and Himax Technologies ( HIMX), down 6.2%, were all laggards within the electronics industry with Applied Materials ( AMAT) 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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