Telefonica Brasil S.A. (VIV): Today's Featured Telecommunications Winner

Telefonica Brasil S.A ( VIV) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole was unchanged today. By the end of trading, Telefonica Brasil S.A rose 43 cents (1.8%) to $25 on light volume. Throughout the day, 1.3 million shares of Telefonica Brasil S.A exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in a price between $24.44-$25.06 after having opened the day at $24.51 as compared to the previous trading day's close of $24.57. Other companies within the Telecommunications industry that increased today were: Leap Wireless International ( LEAP), up 9.9%, Level three Communications ( LVLT), up 8.7%, Sky-mobi ( MOBI), up 8%, and EXFO ( EXFO), up 6.9%.

Telefonica Brasil, S.A. provides fixed-line telecommunications services to residential and commercial customers in the state of Sao Paulo, Brazil. Telefonica Brasil S.A has a market cap of $27.4 billion and is part of the technology sector. The company has a P/E ratio of 6.5, below the average telecommunications industry P/E ratio of 9.3 and below the S&P 500 P/E ratio of 17.7. Shares are down 10.8% year to date as of the close of trading on Thursday. Currently there are seven analysts that rate Telefonica Brasil S.A a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Telefonica Brasil S.A as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and a generally disappointing performance in the stock itself.

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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