Declines From Broadcom Corporation (BRCM) Drive Down Electronics 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.

Broadcom Corporation ( BRCM) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day down 2.4%. By the end of trading, Broadcom Corporation fell $1.45 (-4.3%) to $32.52 on average volume. Throughout the day, 9.7 million shares of Broadcom Corporation exchanged hands as compared to its average daily volume of 7.4 million shares. The stock ranged in price between $32.29-$33.75 after having opened the day at $33.75 as compared to the previous trading day's close of $33.97. Other companies within the Electronics industry that declined today were: Cirrus Logic ( CRUS), down 15.7%, Badger Meter ( BMI), down 14.4%, MoSys ( MOSY), down 10.9%, and Lattice Semiconductor Corporation ( LSCC), down 8.9%.
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Broadcom Corporation provides semiconductor solutions for wired and wireless communications. Its products offer voice, video, data, and multimedia connectivity in the home, office, and mobile environments. Broadcom Corporation has a market cap of $17.32 billion and is part of the technology sector. The company has a P/E ratio of 26.6, above the S&P 500 P/E ratio of 17.7. Shares are up 0.2% year to date as of the close of trading on Tuesday. Currently there are 30 analysts that rate Broadcom Corporation a buy, one analyst rates it a sell, and four rate it a hold.

TheStreet Ratings rates Broadcom 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, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Intermolecular ( IMI), up 12.7%, BTU International ( BTUI), up 7.4%, Altair Nanotechnologies ( ALTI), up 7.2%, and Schmitt Industries ( SMIT), up 5.5%, were all gainers within the electronics industry with Uni-pixel ( UNXL) 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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