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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Cree ( CREE) pushed the Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day down 0.4%. By the end of trading, Cree rose $0.81 (1.4%) to $58.17 on average volume. Throughout the day, 2,301,445 shares of Cree exchanged hands as compared to its average daily volume of 2,533,800 shares. The stock ranged in a price between $57.00-$58.48 after having opened the day at $57.29 as compared to the previous trading day's close of $57.36. Other companies within the Technology sector that increased today were: ARC Group Worldwide ( ARCW), up 27.5%, Intelligent Systems ( INS), up 17.0%, Luna Innovations ( LUNA), up 15.4% and Zoom Technologies ( ZOOM), up 11.0%.

Cree, Inc. develops, manufactures, and sells lighting-class light emitting diode (LED), lighting, and semiconductor products for power and radio-frequency (RF) applications in the United States, China, Europe, South Korea, Japan, Malaysia, and Taiwan. Cree has a market cap of $6.7 billion and is part of the electronics industry. The company has a P/E ratio of 65.7, above the S&P 500 P/E ratio of 17.7. Shares are up 64.2% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate Cree a buy, 2 analysts rate it a sell, and 9 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, OCZ Technology Group ( OCZ), down 37.3%, Camtek ( CAMT), down 20.4%, Velti ( VELT), down 15.8% and Eltek ( ELTK), down 11.6% , were all laggards within the technology sector with ABB ( ABB) 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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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