Cree Inc. (CREE): Today's Featured Electronics Laggard

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 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, Cree fell $6.11 (-9.1%) to $61.06 on heavy volume. Throughout the day, 4,951,419 shares of Cree exchanged hands as compared to its average daily volume of 2,221,000 shares. The stock ranged in price between $60.14-$64.50 after having opened the day at $64.50 as compared to the previous trading day's close of $67.17. Other companies within the Electronics industry that declined today were: China Sunergy ( CSUN), down 10.1%, JA Solar Holdings Co. ADR ( JASO), down 9.5%, Hanwha SolarOne ( HSOL), down 9.3% and Peregrine Semiconductor ( PSMI), down 8.7%.

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 $8.0 billion and is part of the technology sector. The company has a P/E ratio of 78.4, above the S&P 500 P/E ratio of 17.7. Shares are up 7.4% year to date as of the close of trading on Friday. Currently there are 6 analysts that rate Cree a buy, 2 analysts rate it a sell, and 8 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 positive front, WEX ( WEX), up 17.6%, Semiconductor Manufacturing International C ( SMI), up 8.8%, Giga-tronics ( GIGA), up 8.6% and Camtek ( CAMT), up 6.9% , were all gainers within the electronics industry with SunEdison ( SUNE) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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