Telefonica SA (TEF): Today's Featured Telecommunications Winner

Telefonica ( TEF) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day up 0.5%. By the end of trading, Telefonica rose 47 cents (3.8%) to $12.87 on light volume. Throughout the day, 2.9 million shares of Telefonica exchanged hands as compared to its average daily volume of five million shares. The stock ranged in a price between $12.55-$12.94 after having opened the day at $12.57 as compared to the previous trading day's close of $12.40. Other companies within the Telecommunications industry that increased today were: Internet Gold Golden Lines ( IGLD), up 10.9%, Multiband Corporation ( MBND), up 10.1%, Calix ( CALX), up 9.5%, and China TechFaith Wireless Comm Tech ( CNTF), up 7.8%.

Telefonica, S.A. provides fixed and mobile telephony services primarily in Spain, Latin America, and rest of Europe. Telefonica has a market cap of $56.68 billion and is part of the technology sector. The company has a P/E ratio of 57.4, above the average telecommunications industry P/E ratio of 10.2 and above the S&P 500 P/E ratio of 17.7. Shares are down 28.4% year to date as of the close of trading on Wednesday. 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.

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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