Himax Technologies Inc. (HIMX): Today's Featured Technology 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

Himax Technologies ( HIMX) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 1.2%. By the end of trading, Himax Technologies fell $0.36 (-5.8%) to $5.85 on heavy volume. Throughout the day, 7,312,249 shares of Himax Technologies exchanged hands as compared to its average daily volume of 4,758,200 shares. The stock ranged in price between $5.70-$6.09 after having opened the day at $6.08 as compared to the previous trading day's close of $6.21. Other companies within the Technology sector that declined today were: Deltathree ( DDDC), down 28.0%, Kingtone Wirelessinfo Solution ( KONE), down 15.1%, Marketo ( MKTO), down 13.2% and Phoenix New Media ( FENG), down 11.8%.
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Himax Technologies, Inc. designs, develops, and markets semiconductors for flat panel displays. The company operates in two segments, Driver IC and Non-Driver Products. Himax Technologies has a market cap of $1.1 billion and is part of the electronics industry. The company has a P/E ratio of 20.4, above the S&P 500 P/E ratio of 17.7. Shares are up 171.7% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Himax Technologies a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Himax Technologies 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, solid stock price performance, growth in earnings per share and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Webmedia Brands ( WEBM), down 21.6%, Pixelworks ( PXLW), down 20.1%, Overland Storage ( OVRL), down 17.0% and LRAD ( LRAD), down 16.0% , were all gainers within the technology sector with Verizon Communications ( VZ) being today's featured technology sector leader.

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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