SanDisk Corp (SNDK): Today's Featured Computer Hardware 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

SanDisk ( SNDK) pushed the Computer Hardware industry lower today making it today's featured Computer Hardware laggard. The industry as a whole closed the day up 0.4%. By the end of trading, SanDisk fell $1.43 (-2.4%) to $58.47 on average volume. Throughout the day, 3,779,929 shares of SanDisk exchanged hands as compared to its average daily volume of 4,187,000 shares. The stock ranged in price between $58.23-$59.61 after having opened the day at $59.02 as compared to the previous trading day's close of $59.90. Other companies within the Computer Hardware industry that declined today were: Acorn Energy ( ACFN), down 4.2%, Xplore Technologies Corporation Class A ( XPLR), down 4.2%, Interphase ( INPH), down 4.1% and Dataram Corporation ( DRAM), down 3.9%.
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Sandisk Corporation designs, develops, manufactures, and markets flash storage card products that are used in various consumer electronics products. SanDisk has a market cap of $14.2 billion and is part of the technology sector. The company has a P/E ratio of 30.5, above the S&P 500 P/E ratio of 17.7. Shares are up 34.5% year to date as of the close of trading on Friday. Currently there are 17 analysts that rate SanDisk a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates SanDisk 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, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Hutchinson Technology ( HTCH), down 21.9%, OCZ Technology Group ( OCZ), down 11.0%, Quantum Corporation ( QTM), down 7.7% and Stratasys ( SSYS), down 3.7%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer hardware industry could consider iShares Dow Jones US Technology ( IYW) while those bearish on the computer hardware industry could consider ProShares Ultra Short Semiconductor ( SSG).

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