Cree Inc. (CREE): 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

Cree ( CREE) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day up 1.2%. By the end of trading, Cree fell $1.90 (-3.0%) to $61.04 on average volume. Throughout the day, 2,463,025 shares of Cree exchanged hands as compared to its average daily volume of 2,226,400 shares. The stock ranged in price between $60.33-$63.70 after having opened the day at $63.21 as compared to the previous trading day's close of $62.94. Other companies within the Electronics industry that declined today were: Revolution Lighting Technologies ( RVLT), down 7.8%, Bel Fuse ( BELFA), down 5.5%, Qualstar Corporation ( QBAK), down 4.7% and ARM Holdings ( ARMH), down 4.2%.
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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 $7.7 billion and is part of the technology sector. The company has a P/E ratio of 110.3, above the S&P 500 P/E ratio of 17.7. Shares are up 91.4% year to date as of the close of trading on Thursday. 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 positive front, Spreadtrum Communications ( SPRD), down 16.2%, Daqo New Energy ( DQ), down 14.1%, Vitesse Semiconductor ( VTSS), down 11.5% and Trio-Tech International ( TRT), down 10.7% , were all gainers within the electronics industry with Micron Technology ( MU) 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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