Qualcomm Inc. (QCOM): Today's Featured Telecommunications 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.

Qualcomm ( QCOM) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day up 0.3%. By the end of trading, Qualcomm rose $1.04 (1.6%) to $64.88 on average volume. Throughout the day, 15.6 million shares of Qualcomm exchanged hands as compared to its average daily volume of 10.7 million shares. The stock ranged in a price between $64.07-$65.28 after having opened the day at $64.17 as compared to the previous trading day's close of $63.84. Other companies within the Telecommunications industry that increased today were: MERU Networks ( MERU), up 15.9%, Motricity ( MOTR), up 9.3%, Polycom ( PLCM), up 6.2%, and Calix ( CALX), up 5.7%.
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QUALCOMM Incorporated designs, develops, manufactures, and markets digital telecommunications products and services. Qualcomm has a market cap of $106.36 billion and is part of the technology sector. The company has a P/E ratio of 21.1, above the average telecommunications industry P/E ratio of 18.4 and above the S&P 500 P/E ratio of 17.7. Shares are up 16.7% year to date as of the close of trading on Thursday. Currently there are 32 analysts that rate Qualcomm a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Qualcomm as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Linktone ( LTON), down 11.7%, Blonder Tongue Laboratories ( BDR), down 8.2%, RIT Technologies ( RITT), down 7.9%, and WPCS International ( WPCS), down 7.5%, were all laggards within the telecommunications industry with American Tower ( AMT) 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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