Broadcom Corporation (BRCM): 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

Broadcom Corporation ( BRCM) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 1.4%. By the end of trading, Broadcom Corporation fell $0.50 (-1.4%) to $34.89 on average volume. Throughout the day, 6,935,099 shares of Broadcom Corporation exchanged hands as compared to its average daily volume of 6,554,000 shares. The stock ranged in price between $34.81-$35.40 after having opened the day at $35.40 as compared to the previous trading day's close of $35.39. Other companies within the Electronics industry that declined today were: Uni-pixel ( UNXL), down 10.1%, Geospace Technologies ( GEOS), down 10.0%, Sutron Corporation ( STRN), down 5.3% and Oclaro ( OCLR), down 5.1%.
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Broadcom Corporation provides semiconductor solutions for wired and wireless communications. Its products offer voice, video, data, and multimedia connectivity in the home, office, and mobile environments. Broadcom Corporation has a market cap of $18.2 billion and is part of the technology sector. The company has a P/E ratio of 24.4, above the S&P 500 P/E ratio of 17.7. Shares are up 5.3% year to date as of the close of trading on Friday. Currently there are 28 analysts that rate Broadcom Corporation a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Broadcom Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Plug Power ( PLUG), down 24.9%, Advanced Photonix ( API), down 19.2%, Canadian Solar ( CSIQ), down 15.4% and Suntech Power Holdings ( STP), down 15.2% , were all gainers within the electronics industry with Intel ( INTC) 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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