Lam Research Corporation (LRCX): 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

Lam Research Corporation ( LRCX) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Lam Research Corporation fell $0.77 (-1.6%) to $46.75 on light volume. Throughout the day, 1,407,122 shares of Lam Research Corporation exchanged hands as compared to its average daily volume of 2,201,800 shares. The stock ranged in price between $46.36-$47.61 after having opened the day at $47.11 as compared to the previous trading day's close of $47.52. Other companies within the Electronics industry that declined today were: Trina Solar ( TSL), down 11.1%, Vimicro International Corporation ( VIMC), down 8.6%, Uni-pixel ( UNXL), down 7.9% and Digital Power Corporation ( DPW), down 7.5%.
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Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipments used in the fabrication of integrated circuits. Lam Research Corporation has a market cap of $7.6 billion and is part of the technology sector. The company has a P/E ratio of 172.6, above the S&P 500 P/E ratio of 17.7. Shares are up 29.0% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Lam Research Corporation a buy, 1 analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates Lam Research Corporation as a buy. 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, expanding profit margins 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.

On the positive front, Renewable Energy Trade Board ( EBOD), down 80.0%, Revolution Lighting Technologies ( RVLT), down 16.5%, TranSwitch Corporation ( TXCC), down 13.3% and Altair Nanotechnologies ( ALTI), down 11.0% , were all gainers within the electronics industry with Cree ( CREE) 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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