Texas Instruments Inc. (TXN): 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

Texas Instruments ( TXN) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day down 0.9%. By the end of trading, Texas Instruments fell $0.41 (-1.1%) to $35.71 on light volume. Throughout the day, 5,770,116 shares of Texas Instruments exchanged hands as compared to its average daily volume of 9,022,600 shares. The stock ranged in price between $35.61-$36.29 after having opened the day at $36.23 as compared to the previous trading day's close of $36.12. Other companies within the Electronics industry that declined today were: Vitesse Semiconductor ( VTSS), down 17.4%, Nova Measuring Instruments ( NVMI), down 8.7%, GigOptix ( GIG), down 6.6% and Sevcon ( SEV), down 6.2%.
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Texas Instruments Incorporated engages in the design, manufacture, sale of semiconductors to electronics designers and manufacturers worldwide. The company operates in four segments: Analog, Embedded Processing, Wireless, and Other. Texas Instruments has a market cap of $39.7 billion and is part of the technology sector. The company has a P/E ratio of 22.2, above the S&P 500 P/E ratio of 17.7. Shares are up 16.9% year to date as of the close of trading on Tuesday. Currently there are 9 analysts that rate Texas Instruments a buy, 5 analysts rate it a sell, and 19 rate it a hold.

TheStreet Ratings rates Texas Instruments as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, notable return on equity, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Amtech Systems ( ASYS), down 13.9%, Digital Power Corporation ( DPW), down 11.4%, Oclaro ( OCLR), down 7.0% and Altair Nanotechnologies ( ALTI), down 6.3%.

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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