Qualcomm Inc. (QCOM): 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.

Qualcomm ( QCOM) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Qualcomm fell $1.24 (-2%) to $61.40 on average volume. Throughout the day, 8.7 million shares of Qualcomm exchanged hands as compared to its average daily volume of 10.4 million shares. The stock ranged in price between $61.38-$62.32 after having opened the day at $62.05 as compared to the previous trading day's close of $62.64. Other companies within the Telecommunications industry that declined today were: Nexxus Lighting ( NEXS), down 9.7%, Dialogic ( DLGC), down 8.3%, Linktone ( LTON), down 7.5%, and Phazar Corporation ( ANTP), down 6.1%.
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QUALCOMM Incorporated designs, develops, manufactures, and markets digital telecommunications products and services. Qualcomm has a market cap of $106.71 billion and is part of the technology sector. The company has a P/E ratio of 21.2, 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 14.5% year to date as of the close of trading on Friday. Currently there are 33 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, increase in stock price during the past year, 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 positive front, Otelco ( OTT), up 17.3%, Alvarion ( ALVR), up 9.8%, AudioCodes ( AUDC), up 8.6%, and Polycom ( PLCM), up 8.5%, were all gainers within the telecommunications industry with Acme Packet ( APKT) 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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