Siemens AG (SI): 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.

Siemens ( SI) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day up 1%. By the end of trading, Siemens rose $1.04 (1%) to $101.22 on light volume. Throughout the day, 354,908 shares of Siemens exchanged hands as compared to its average daily volume of 634,900 shares. The stock ranged in a price between $100.04-$101.67 after having opened the day at $100.95 as compared to the previous trading day's close of $100.18. Other companies within the Telecommunications industry that increased today were: Alvarion ( ALVR), up 21.7%, Globalstar Incorporated ( GSAT), up 15%, Internet Gold Golden Lines ( IGLD), up 9.6%, and Sky-mobi ( MOBI), up 8.1%.
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Siemens Aktiengesellschaft, an electronics and electrical engineering company, operates in the industry, energy, healthcare, and infrastructure and cities sectors worldwide. Siemens has a market cap of $88.89 billion and is part of the technology sector. The company has a P/E ratio of 32.1, above the average telecommunications industry P/E ratio of 17 and above the S&P 500 P/E ratio of 17.7. Shares are up 4.8% year to date as of the close of trading on Wednesday. Currently there are four analysts that rate Siemens a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Siemens as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow.

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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