This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Telefonica SA (TEF): Today's Featured Telecommunications Winner

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.

Telefonica ( TEF) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day up 0.7%. By the end of trading, Telefonica rose 53 cents (3.9%) to $14.18 on average volume. Throughout the day, 2.5 million shares of Telefonica exchanged hands as compared to its average daily volume of three million shares. The stock ranged in a price between $13.97-$14.26 after having opened the day at $14 as compared to the previous trading day's close of $13.65. Other companies within the Telecommunications industry that increased today were: Internet Gold Golden Lines ( IGLD), up 23%, B Communications ( BCOM), up 21.8%, Phazar Corporation ( ANTP), up 8.7%, and Alcatel-Lucent ( ALU), up 7.6%.

  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

Telefonica, S.A. provides fixed and mobile telephony services primarily in Spain, Latin America, and rest of Europe. Telefonica has a market cap of $59.97 billion and is part of the technology sector. The company has a P/E ratio of 57.4, above the average telecommunications industry P/E ratio of 10.8 and above the S&P 500 P/E ratio of 17.7. Shares are down 20.6% year to date as of the close of trading on Tuesday. Currently there are no analysts that rate Telefonica a buy, three analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Telefonica as a hold. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and poor profit margins.

On the negative front, Multiband Corporation ( MBND), down 4.7%, Elephant Talk Communications ( ETAK), down 4.7%, Technical Communications ( TCCO), down 4.3%, and TeleCommunication Systems ( TSYS), down 4%, were all laggards within the telecommunications industry with Ciena Corporation ( CIEN) being today's telecommunications industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the telecommunications industry could consider iShares Dow Jones US Telecom ( IYZ) while those bearish on the telecommunications industry could consider ProShares Ult Sht Telecommunication ( TLL).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs