Declines From SanDisk Corp (SNDK) Drive Down Computer Hardware Industry

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.

SanDisk ( SNDK) pushed the Computer Hardware industry lower today making it today's featured Computer Hardware laggard. The industry as a whole closed the day down 0.4%. By the end of trading, SanDisk fell 91 cents (-1.6%) to $57.71 on light volume. Throughout the day, 2.9 million shares of SanDisk exchanged hands as compared to its average daily volume of 3.9 million shares. The stock ranged in price between $57.45-$58.92 after having opened the day at $58.90 as compared to the previous trading day's close of $58.62. Other companies within the Computer Hardware industry that declined today were: Concurrent Computer Corporation ( CCUR), down 8.4%, Hutchinson Technology ( HTCH), down 6%, Cray ( CRAY), down 3.3%, and Transact Technologies ( TACT), down 3.2%.
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Sandisk Corporation designs, develops, manufactures, and markets flash storage card products that are used in various consumer electronics products. SanDisk has a market cap of $14.1 billion and is part of the technology sector. The company has a P/E ratio of 34.3, above the S&P 500 P/E ratio of 17.7. Shares are up 34.1% year to date as of the close of trading on Thursday. Currently there are 15 analysts that rate SanDisk a buy, one analyst rates it a sell, and five rate it a hold.

TheStreet Ratings rates SanDisk as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Dot Hill Systems Corporation ( HILL), up 8.2%, NetApp ( NTAP), up 5.9%, Rimage Corporation ( RIMG), up 2.6%, and Dataram Corporation ( DRAM), up 2.4%, were all gainers within the computer hardware industry with Universal Display Corporation ( PANL) being today's featured computer hardware industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer hardware industry could consider iShares Dow Jones US Technology ( IYW) while those bearish on the computer hardware industry could consider ProShares Ultra Short Semiconductor ( SSG).

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