Lexmark International Inc. (LXK): Today's Featured Computer Hardware Winner

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

Lexmark International ( LXK) pushed the Computer Hardware industry higher today making it today's featured computer hardware winner. The industry as a whole closed the day down 0.5%. By the end of trading, Lexmark International rose $0.83 (2.8%) to $30.75 on average volume. Throughout the day, 1,160,939 shares of Lexmark International exchanged hands as compared to its average daily volume of 1,119,600 shares. The stock ranged in a price between $29.79-$30.79 after having opened the day at $29.85 as compared to the previous trading day's close of $29.92. Other companies within the Computer Hardware industry that increased today were: Interphase ( INPH), up 6.0%, Radcom ( RDCM), up 5.2%, Hauppauge Digital ( HAUP), up 2.9% and Video Display Corporation ( VIDE), up 2.6%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Lexmark International, Inc. develops, manufactures, and supplies printing and imaging solutions for offices. It offers laser printers, inkjet printers, and multifunction devices, as well as cartridges and other supplies, services, and solutions. Lexmark International has a market cap of $1.9 billion and is part of the technology sector. The company has a P/E ratio of 24.8, above the S&P 500 P/E ratio of 17.7. Shares are up 31.6% year to date as of the close of trading on Monday. Currently there are no analysts that rate Lexmark International a buy, 6 analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Lexmark International as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, largely solid financial position with reasonable debt levels by most measures 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 negative front, Aruba Networks ( ARUN), down 4.9%, Palo Alto Networks ( PANW), down 3.9%, Acorn Energy ( ACFN), down 3.5% and Extreme Networks ( EXTR), down 3.3% , were all laggards within the computer hardware industry with International Business Machines ( IBM) being today's computer hardware industry laggard.

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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
null