Frontier Communications Corp Class B (FTR): Today's Featured Telecommunications Laggard

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.

Frontier Communications Corp Class B ( FTR) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 2%. By the end of trading, Frontier Communications Corp Class B fell 6 cents (-1.3%) to $4.78 on light volume. Throughout the day, 7.7 million shares of Frontier Communications Corp Class B exchanged hands as compared to its average daily volume of 10.4 million shares. The stock ranged in price between $4.70-$4.82 after having opened the day at $4.79 as compared to the previous trading day's close of $4.85. Other companies within the Telecommunications industry that declined today were: Powerwave Technologies ( PWAV), down 19.2%, Linktone ( LTON), down 13.2%, B Communications ( BCOM), down 6.8%, and UTStarcom Holdings ( UTSI), down 6.2%.
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Frontier Communications Corporation provides communications services for residential and business customers in the United States. Frontier Communications Corp Class B has a market cap of $4.75 billion and is part of the technology sector. The company has a P/E ratio of 47.6, above the average telecommunications industry P/E ratio of 43.3 and above the S&P 500 P/E ratio of 17.7. Shares are down 7.6% year to date as of the close of trading on Wednesday. Currently there are six analysts that rate Frontier Communications Corp Class B a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Frontier Communications Corp Class B as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk.

On the positive front, Nexxus Lighting ( NEXS), up 189.2%, Globalstar Incorporated ( GSAT), up 17.5%, RIT Technologies ( RITT), up 16.6%, and Aviat Networks ( AVNW), up 10.6%, were all gainers within the telecommunications industry with AT&T ( T) being today's featured telecommunications industry leader.

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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