Sprint Nextel Corp (S): 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.

Sprint Nextel ( S) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 0.7%. By the end of trading, Sprint Nextel fell 11 cents (-2.1%) to $5.09 on heavy volume. Throughout the day, 115.9 million shares of Sprint Nextel exchanged hands as compared to its average daily volume of 67.6 million shares. The stock ranged in price between $4.92-$5.21 after having opened the day at $5.02 as compared to the previous trading day's close of $5.20. Other companies within the Telecommunications industry that declined today were: Leap Wireless International ( LEAP), down 6.1%, Linktone ( LTON), down 5.2%, RIT Technologies ( RITT), down 4.2%, and WPCS International ( WPCS), down 3.6%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

Sprint Nextel Corporation, together with its subsidiaries, offers wireless and wireline communications products and services to individual consumers, businesses, government subscribers, and resellers in the United States, Puerto Rico, and the United States Virgin Islands. Sprint Nextel has a market cap of $14.7 billion and is part of the technology sector. Shares are up 122.2% year to date as of the close of trading on Wednesday. Currently there are nine analysts that rate Sprint Nextel a buy, four analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Sprint Nextel as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk.

On the positive front, ShoreTel ( SHOR), up 12.9%, Phazar Corporation ( ANTP), up 10.4%, Trunkbow International Holdings ( TBOW), up 9.8%, and Otelco ( OTT), up 8.1%, were all gainers within the telecommunications industry with America Movil S.A.B. de C.V ( AMX) 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).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

Verizon and Yahoo! Sports Bring Super Bowl LII to the Small Screen

Verizon and Yahoo! Sports Bring Super Bowl LII to the Small Screen

These Stocks Are Showing Resiliency Amid the Market Selloff

These Stocks Are Showing Resiliency Amid the Market Selloff

Stocks Slide and Amazon's Profit Soars - 5 Things You Must Know

Stocks Slide and Amazon's Profit Soars - 5 Things You Must Know

5 High-Growth Tech Stocks for 2018

5 High-Growth Tech Stocks for 2018

Goldman Exec Swindled out of $1.2 Million in Vintage Wine: LIVE MARKETS BLOG

Goldman Exec Swindled out of $1.2 Million in Vintage Wine: LIVE MARKETS BLOG