Cavium Inc (CAVM): 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

Cavium ( CAVM) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 2.5%. By the end of trading, Cavium fell $0.37 (-1.0%) to $35.20 on average volume. Throughout the day, 787,295 shares of Cavium exchanged hands as compared to its average daily volume of 888,900 shares. The stock ranged in price between $35.17-$36.04 after having opened the day at $35.69 as compared to the previous trading day's close of $35.57. Other companies within the Electronics industry that declined today were: Uni-pixel ( UNXL), down 26.0%, Aehr Test Systems ( AEHR), down 12.6%, Altair Nanotechnologies ( ALTI), down 8.9% and Alliance Fiber Optic Products ( AFOP), down 8.6%.
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Cavium, Inc. designs, develops, and markets semiconductor processors for intelligent and secure networks. Cavium has a market cap of $1.8 billion and is part of the technology sector. Shares are up 11.4% year to date as of the close of trading on Thursday. Currently there are 11 analysts that rate Cavium a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Cavium 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 solid stock price performance. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

On the positive front, Renewable Energy Trade Board ( EBOD), down 400.0%, SolarCity ( SCTY), down 26.1%, Microvision ( MVIS), down 19.4% and Mattson Technology ( MTSN), down 11.4% , were all gainers within the electronics industry with Micron Technology ( MU) 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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