Alcatel-Lucent (ALU): Today's Featured Telecommunications Loser

Alcatel-Lucent ( ALU) pushed the Telecommunications industry lower today making it today's featured Telecommunications loser. The industry as a whole closed the day up 0.2%. By the end of trading, Alcatel-Lucent fell 3 cents (-1.9%) to $1.51 on average volume. Throughout the day, 26.9 million shares of Alcatel-Lucent exchanged hands as compared to its average daily volume of 20.2 million shares. The stock ranged in price between $1.49-$1.53 after having opened the day at $1.51 as compared to the previous trading day's close of $1.54. Other company's within the Telecommunications industry that declined today were: Nexxus Lighting ( NEXS), down 25%, MERU Networks ( MERU), down 9.2%, Alvarion ( ALVR), down 5.5%, and Globalstar Incorporated ( GSAT), down 5.5%.

Alcatel-Lucent provides networking and communications technology, products, and services to service providers, enterprises, and governments worldwide. Alcatel-Lucent has a market cap of $3.77 billion and is part of the technology sector. The company has a P/E ratio of 4.6, above the average telecommunications industry P/E ratio of 2.4 and below the S&P 500 P/E ratio of 17.7. Shares are down 1.3% year to date as of the close of trading on Monday. Currently there are four analysts that rate Alcatel-Lucent a buy, three analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Alcatel-Lucent as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, generally poor debt management and feeble growth in the company's earnings per share.

On the positive front, Vocera Communications ( VCRA), up 9.1%, B Communications ( BCOM), up 8.5%, Linktone ( LTON), up 6.2%, and RELM Wireless Corporation ( RWC), up 6.1%, were all gainers within the telecommunications industry with American Tower ( AMT) 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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