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

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Ericsson Telephone Company ( ERIC) pushed the Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day up 0.6%. By the end of trading, Ericsson Telephone Company rose 24 cents (2.5%) to $10.03 on average volume. Throughout the day, 3.6 million shares of Ericsson Telephone Company exchanged hands as compared to its average daily volume of 3.9 million shares. The stock ranged in a price between $9.96-$10.05 after having opened the day at $10.03 as compared to the previous trading day's close of $9.79. Other companies within the Technology sector that increased today were: MER Telemanagement Solutions ( MTSL), up 40.6%, Wave Systems Corporation ( WAVX), up 20.1%, Oplink Communications ( OPLK), up 14.4%, and Streamline Health Solutions ( STRM), up 13.1%.

Ericsson provides network infrastructure, telecom services, and multimedia solutions to mobile and fixed networks operators worldwide. Ericsson Telephone Company has a market cap of $29.4 billion and is part of the telecommunications industry. The company has a P/E ratio of 15.8, above the average telecommunications industry P/E ratio of 14 and below the S&P 500 P/E ratio of 17.7. Shares are down 5.3% year to date as of the close of trading on Thursday. 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, Marvell Technology Group ( MRVL), down 14.2%, Helios & Matheson Information Technology In ( HMNY), down 12.6%, ION Geophysical Corporation ( IO), down 11.3%, and 21Vianet Group ( VNET), down 10.6%, were all laggards within the technology sector with Advanced Micro Devices ( AMD) being today's technology sector laggard.

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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