Telefonica SA (TEF): Today's Featured Technology Loser

Telefonica ( TEF) pushed the Technology sector lower today making it today's featured Technology loser. The sector as a whole closed the day down 0.9%. By the end of trading, Telefonica fell 6 cents (-0.5%) to $12.24 on light volume. Throughout the day, 3.3 million shares of Telefonica exchanged hands as compared to its average daily volume of 5.1 million shares. The stock ranged in price between $12.17-$12.34 after having opened the day at $12.21 as compared to the previous trading day's close of $12.31. Other company's within the Technology sector that declined today were: Kingtone Wirelessinfo Solution ( KONE), down 14.3%, A123 Systems ( AONE), down 13.3%, eOn Communications Corporation ( EONC), down 12%, and Internet Gold Golden Lines ( IGLD), down 11.4%.

Telefonica, S.A. provides fixed and mobile telephony services primarily in Spain, Latin America, and rest of Europe. Telefonica has a market cap of $54.81 billion and is part of the telecommunications industry. The company has a P/E ratio of 57.4, above the average telecommunications industry P/E ratio of nine and above the S&P 500 P/E ratio of 17.7. Shares are down 32.9% year to date as of the close of trading on Tuesday. Currently there is one analyst that rates Telefonica a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Telefonica as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally poor debt management and poor profit margins.

On the positive front, Xata Corporation ( XATA), up 29%, New Energy Systems Group ( NEWN), up 17.2%, Mitek Systems ( MITK), up 13.3%, and Globalstar Incorporated ( GSAT), up 13%, were all gainers within the technology sector with ASML ( ASML) being today's featured technology sector winner.

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).
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