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

Ericsson Telephone Company ( ERIC) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day up 0.2%. By the end of trading, Ericsson Telephone Company rose 15 cents (1.6%) to $9.66 on light volume. Throughout the day, 2.4 million shares of Ericsson Telephone Company exchanged hands as compared to its average daily volume of four million shares. The stock ranged in a price between $9.58-$9.68 after having opened the day at $9.61 as compared to the previous trading day's close of $9.51. Other companies within the Telecommunications industry that increased today were: Clearwire ( CLWR), up 18.5%, Powerwave Technologies ( PWAV), up 10%, UniTek Global Services ( UNTK), up 9.3%, and Telestone Technologies Corporation ( TSTC), up 8.6%.

Ericsson provides network infrastructure, telecom services, and multimedia solutions to mobile and fixed networks operators worldwide. Ericsson Telephone Company has a market cap of $28.73 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 13.7 and below the S&P 500 P/E ratio of 17.7. Shares are down 6.1% year to date as of the close of trading on Tuesday. Currently there are three analysts that rate Ericsson Telephone Company a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Ericsson Telephone Company as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

On the negative front, Otelco Inc. Income Deposit Secs Units Cons ( OTT), down 41.6%, Novatel Wireless ( NVTL), down 15.1%, DragonWave ( DRWI), down 6.2%, and MERU Networks ( MERU), down 5.7%, were all laggards within the telecommunications industry with Verizon Communications ( VZ) 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).
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