Mellanox Technologies Ltd. (MLNX): 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

Mellanox Technologies ( MLNX) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Mellanox Technologies fell $0.63 (-1.2%) to $51.06 on light volume. Throughout the day, 387,032 shares of Mellanox Technologies exchanged hands as compared to its average daily volume of 887,700 shares. The stock ranged in price between $50.52-$51.69 after having opened the day at $51.57 as compared to the previous trading day's close of $51.69. Other companies within the Electronics industry that declined today were: Spire Corporation ( SPIR), down 10.8%, Himax Technologies ( HIMX), down 9.2%, Geospace Technologies ( GEOS), down 8.9% and WEX ( WEX), down 6.5%.
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Mellanox Technologies, Ltd., a fabless semiconductor company, produces and supplies semiconductor interconnect products for computing, storage, and communications applications in the high-performance computing, Web 2.0, storage, financial services, database, cloud, and embedded markets. Mellanox Technologies has a market cap of $2.2 billion and is part of the technology sector. The company has a P/E ratio of 24.2, above the S&P 500 P/E ratio of 17.7. Shares are down 13.4% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate Mellanox Technologies a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Mellanox Technologies as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow.

On the positive front, Pulse Electronics ( PULS), down 14.1%, Sypris Solutions ( SYPR), down 11.9%, Camtek ( CAMT), down 10.9% and Diodes ( DIOD), down 8.1% , were all gainers within the electronics industry with Agilent Technologies ( A) 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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