Avago Technologies Ltd (AVGO): Today's Featured Electronics Laggard

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

Avago Technologies ( AVGO) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 0.5%. By the end of trading, Avago Technologies fell $0.57 (-1.8%) to $31.96 on heavy volume. Throughout the day, 5,215,726 shares of Avago Technologies exchanged hands as compared to its average daily volume of 2,816,400 shares. The stock ranged in price between $31.55-$32.47 after having opened the day at $32.47 as compared to the previous trading day's close of $32.53. Other companies within the Electronics industry that declined today were: Winland Electronics ( WELX), down 99.0%, Alpha & Omega Semiconductor ( AOSL), down 15.8%, SemiLEDs ( LEDS), down 9.8% and Peregrine Semiconductor ( PSMI), down 9.3%.
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Avago Technologies Limited engages in the design, development, and supply of analog semiconductor devices with a focus on III-V based products. Avago Technologies has a market cap of $8.0 billion and is part of the technology sector. The company has a P/E ratio of 14.5, below the S&P 500 P/E ratio of 17.7. Shares are up 3.1% year to date as of the close of trading on Monday.

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

On the positive front, On Track Innovations ( OTIV), down 19.6%, Renewable Energy Trade Board ( EBOD), down 13.6%, Vishay Intertechnology ( VSH), down 9.8% and Spansion ( CODE), down 9.0% , were all gainers within the electronics industry with Linear Technology ( LLTC) 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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