Cree Inc. (CREE): 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

Cree ( CREE) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 2.6%. By the end of trading, Cree fell $0.65 (-1.1%) to $59.66 on light volume. Throughout the day, 1,021,149 shares of Cree exchanged hands as compared to its average daily volume of 2,527,300 shares. The stock ranged in price between $59.34-$60.73 after having opened the day at $60.24 as compared to the previous trading day's close of $60.31. Other companies within the Electronics industry that declined today were: IEC Electronics Corporation ( IEC), down 13.8%, Sevcon ( SEV), down 13.4%, Raven Industries ( RAVN), down 7.5% and Eltek ( ELTK), down 7.1%.
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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 $7.1 billion and is part of the technology sector. The company has a P/E ratio of 101.5, above the S&P 500 P/E ratio of 17.7. Shares are up 76.2% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate Cree a buy, 4 analysts rate it a sell, and 7 rate it a hold.

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.

On the positive front, Meade Instruments Corporation ( MEAD), down 104.2%, JA Solar Holdings Co. ADR ( JASO), down 70.4%, China Sunergy ( CSUN), down 50.0% and Ascent Solar Technologies ( ASTI), down 34.5% , 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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