Texas Instruments Inc. (TXN): Today's Featured Technology 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

Texas Instruments ( TXN) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 1.7%. By the end of trading, Texas Instruments fell $0.59 (-1.6%) to $36.01 on average volume. Throughout the day, 10,058,678 shares of Texas Instruments exchanged hands as compared to its average daily volume of 9,734,900 shares. The stock ranged in price between $35.81-$36.74 after having opened the day at $36.48 as compared to the previous trading day's close of $36.60. Other companies within the Technology sector that declined today were: Renewable Energy Trade Board ( EBOD), down 48.9%, Hanwha SolarOne ( HSOL), down 21.4%, Suntech Power Holdings ( STP), down 20.3% and LDK Solar Company ( LDK), down 18.6%.
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Texas Instruments Incorporated engages in the design, manufacture, sale of semiconductors to electronics designers and manufacturers worldwide. The company operates in four segments: Analog, Embedded Processing, Wireless, and Other. Texas Instruments has a market cap of $40.6 billion and is part of the electronics industry. The company has a P/E ratio of 22.8, above the S&P 500 P/E ratio of 17.7. Shares are up 18.6% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate Texas Instruments a buy, 5 analysts rate it a sell, and 19 rate it a hold.

TheStreet Ratings rates Texas Instruments as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, increase in net income, notable return on equity, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Multiband Corporation ( MBND), down 24.0%, Transcat ( TRNS), down 16.9%, Kingtone Wirelessinfo Solution ( KONE), down 15.6% and eOn Communications Corporation ( EONC), down 14.7%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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