3 Stocks Pushing The Electronics Industry Downward

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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 84 points (0.6%) at 15,176 as of Tuesday, May 14, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 2,014 issues advancing vs. 928 declining with 109 unchanged.

The Electronics industry currently sits up 0.5% versus the S&P 500, which is up 0.9%. On the negative front, top decliners within the industry include Advanced Semiconductor Engineering ( ASX), down 1.18, and Intel ( INTC), down 0.73. Top gainers within the industry include Acuity Brands ( AYI), up 4.1%, Jabil Circuit ( JBL), up 3.8%, LSI Corporation ( LSI), up 3.1%, LG.Display Company ( LPL), up 2.7% and Freescale Semiconductor ( FSL), up 2.4%.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry lower today:

3. United Microelectronics ( UMC) is one of the companies pushing the Electronics industry lower today. As of noon trading, United Microelectronics is down $0.04 (-1.6%) to $2.14 on average volume Thus far, 1.1 million shares of United Microelectronics exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $2.12-$2.17 after having opened the day at $2.16 as compared to the previous trading day's close of $2.17.

United Microelectronics Corporation provides semiconductor wafer foundry solutions. The company offers wafer manufacturing services and other solutions to address the needs of foundry customers. United Microelectronics has a market cap of $5.4 billion and is part of the technology sector. The company has a P/E ratio of 30.6, above the S&P 500 P/E ratio of 17.7. Shares are up 9.0% year to date as of the close of trading on Monday.

TheStreet Ratings rates United Microelectronics 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 attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself. Get the full United Microelectronics Ratings Report now.

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2. As of noon trading, Trimble Navigation ( TRMB) is down $0.61 (-2.1%) to $28.45 on average volume Thus far, 1.1 million shares of Trimble Navigation exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $28.43-$29.18 after having opened the day at $29.02 as compared to the previous trading day's close of $29.06.

Trimble Navigation Limited designs and distributes positioning products and applications enabled by global positioning system (GPS), optical, laser, and wireless communications technology. Trimble Navigation has a market cap of $7.5 billion and is part of the technology sector. The company has a P/E ratio of 39.4, above the S&P 500 P/E ratio of 17.7. Shares are down 2.5% year to date as of the close of trading on Monday.

TheStreet Ratings rates Trimble Navigation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Trimble Navigation Ratings Report now.

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1. As of noon trading, Cree ( CREE) is down $1.61 (-2.6%) to $59.50 on heavy volume Thus far, 2.0 million shares of Cree exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $58.86-$60.30 after having opened the day at $58.88 as compared to the previous trading day's close of $61.11.

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 $7.2 billion and is part of the technology sector. The company has a P/E ratio of 104.4, above the S&P 500 P/E ratio of 17.7. Shares are up 81.3% year to date as of the close of trading on Monday.

TheStreet Ratings rates Cree as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall. Get the full Cree Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

If you are interested in one of these 5 stocks, 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).

A reminder about TheStreet Ratings group: 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.

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