Ericsson Telephone Company (ERIC): Today's Featured Telecommunications Loser

Ericsson Telephone Company ( ERIC) pushed the Telecommunications industry lower today making it today's featured Telecommunications loser. The industry as a whole closed the day up 0.8%. By the end of trading, Ericsson Telephone Company fell 14 cents (-1.6%) to $8.48 on light volume. Throughout the day, 3.2 million shares of Ericsson Telephone Company exchanged hands as compared to its average daily volume of 5.3 million shares. The stock ranged in price between $8.42-$8.56 after having opened the day at $8.48 as compared to the previous trading day's close of $8.62. Other company's within the Telecommunications industry that declined today were: MER Telemanagement Solutions ( MTSL), down 9.1%, Ditech Networks Corporation ( DITC), down 6.8%, Zhone Technologies ( ZHNE), down 6.7%, and MERU Networks ( MERU), down 6.6%.

Ericsson provides network infrastructure, telecom services, and multimedia solutions to mobile and fixed networks operators worldwide. Ericsson Telephone Company has a market cap of $29.23 billion and is part of the technology sector. The company has a P/E ratio of 15.8, above the average telecommunications industry P/E ratio of 11.3 and below the S&P 500 P/E ratio of 17.7. Shares are down 14.9% year to date as of the close of trading on Wednesday. Currently there are three analysts that rate Ericsson Telephone Company a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Ericsson Telephone Company as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels 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, Elephant Talk Communications ( ETAK), up 29.3%, Ambient Corporation ( AMBT), up 23.6%, Ciena Corporation ( CIEN), up 14.1%, and Vicon Industries ( VII), up 12%, were all gainers within the telecommunications industry with BCE ( BCE) being today's featured telecommunications industry winner.

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).
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