Cree Inc. (CREE): Today's Featured Technology 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

Cree ( CREE) pushed the Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day up 0.9%. By the end of trading, Cree rose $0.69 (1.1%) to $63.53 on light volume. Throughout the day, 1,410,296 shares of Cree exchanged hands as compared to its average daily volume of 2,260,600 shares. The stock ranged in a price between $62.28-$63.89 after having opened the day at $63.20 as compared to the previous trading day's close of $62.84. Other companies within the Technology sector that increased today were: Plug Power ( PLUG), up 24.9%, Advanced Photonix ( API), up 19.2%, Kingtone Wirelessinfo Solution ( KONE), up 16.6% and Canadian Solar ( CSIQ), up 15.4%.
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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 $7.2 billion and is part of the electronics industry. The company has a P/E ratio of 103.4, above the S&P 500 P/E ratio of 17.7. Shares are up 79.5% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate Cree a buy, 3 analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Cree 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, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Ambient Corporation ( AMBT), down 10.2%, Uni-pixel ( UNXL), down 10.1%, Geospace Technologies ( GEOS), down 10.0% and TigerLogic Corporation ( TIGR), down 9.0% , were all laggards within the technology sector with Corning ( GLW) being today's technology sector laggard.

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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