Cree Inc (CREE): Today's Featured Technology 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 Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.9%. By the end of trading, Cree fell $7.01 (-12.1%) to $51.04 on heavy volume. Throughout the day, 13,381,076 shares of Cree exchanged hands as compared to its average daily volume of 1,798,600 shares. The stock ranged in price between $50.85-$53.40 after having opened the day at $53.05 as compared to the previous trading day's close of $58.05. Other companies within the Technology sector that declined today were: Zhone Technologies ( ZHNE), down 20.9%, Unisys ( UIS), down 11.5%, ChinaNet Online Holdings ( CNET), down 10.8% and Zix ( ZIXI), down 10.6%.

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 $7.0 billion and is part of the electronics industry. Shares are down 7.2% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Cree a buy, 2 analysts rate it a sell, and 6 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 good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Sanmina ( SANM), up 14.5%, Net Element ( NETE), up 9.4%, Aetrium ( ATRM), up 8.6% and Medidata Solutions ( MDSO), up 7.9% , were all gainers within the technology sector with Skyworks Solutions ( SWKS) 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).

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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