Marvell Technology Group Ltd. (MRVL): 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

Marvell Technology Group ( MRVL) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 1.1%. By the end of trading, Marvell Technology Group fell $0.38 (-3.3%) to $11.05 on heavy volume. Throughout the day, 10,858,985 shares of Marvell Technology Group exchanged hands as compared to its average daily volume of 7,147,500 shares. The stock ranged in price between $10.98-$11.50 after having opened the day at $11.45 as compared to the previous trading day's close of $11.43. Other companies within the Electronics industry that declined today were: Vimicro International Corporation ( VIMC), down 15.6%, Plug Power ( PLUG), down 14.1%, Hanwha SolarOne ( HSOL), down 11.6% and Giga-tronics ( GIGA), down 7.9%.
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Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone ARM-based microprocessor integrated circuits. Marvell Technology Group has a market cap of $5.6 billion and is part of the technology sector. The company has a P/E ratio of 22.6, above the S&P 500 P/E ratio of 17.7. Shares are up 55.5% year to date as of the close of trading on Wednesday. Currently there are 7 analysts that rate Marvell Technology Group a buy, 3 analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates Marvell Technology Group as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

On the positive front, Digital Power Corporation ( DPW), down 16.8%, Renewable Energy Trade Board ( EBOD), down 15.9%, Himax Technologies ( HIMX), down 11.7% and LightPath Technologies ( LPTH), down 10.3% , were all gainers within the electronics industry with First Solar ( FSLR) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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