Tim Holding Company (TSU): 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.

Tim Holding Company ( TSU) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 0.5%. By the end of trading, Tim Holding Company fell 88 cents (-4.5%) to $18.52 on heavy volume. Throughout the day, 7.4 million shares of Tim Holding Company exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in price between $17.73-$19.17 after having opened the day at $18.76 as compared to the previous trading day's close of $19.40. Other companies within the Telecommunications industry that declined today were: Motricity ( MOTR), down 9.5%, Telestone Technologies Corporation ( TSTC), down 8.8%, Globalstar Incorporated ( GSAT), down 6.2%, and AudioCodes ( AUDC), down 6.1%.
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TIM Participacoes S.A., through its subsidiaries, provides mobile telecommunications services using digital technologies to business and individual customers in Brazil. The company offers mobile, fixed and long distance telephony, data transmission and Internet services. Tim Holding Company has a market cap of $9.29 billion and is part of the technology sector. The company has a P/E ratio of 12.7, above the average telecommunications industry P/E ratio of 6.3 and below the S&P 500 P/E ratio of 17.7. Shares are down 25.5% year to date as of the close of trading on Monday. Currently there are three analysts that rate Tim Holding Company a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Tim Holding Company as a buy. 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. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, MetroPCS Communications ( PCS), up 22.9%, WPCS International ( WPCS), up 22.2%, B Communications ( BCOM), up 13.1%, and Maxcom Telecomunicaciones S.A.B. de C.V ( MXT), up 11.5%, were all gainers within the telecommunications industry with Crown Castle International ( CCI) 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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