Verizon Communications Inc (VZ): Today's Featured Technology 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.

Verizon Communications ( VZ) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.4%. By the end of trading, Verizon Communications fell 58 cents (-1.3%) to $45.20 on average volume. Throughout the day, 12.8 million shares of Verizon Communications exchanged hands as compared to its average daily volume of 13.3 million shares. The stock ranged in price between $45.14-$45.98 after having opened the day at $45.93 as compared to the previous trading day's close of $45.78. Other companies within the Technology sector that declined today were: Deltathree ( DDDC), down 16.7%, CafePress ( PRSS), down 16.7%, Aetrium Incorporated ( ATRM), down 13.8%, and iGo ( IGOI), down 11.6%.
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Verizon Communications Inc. provides communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide. Verizon Communications has a market cap of $131.36 billion and is part of the telecommunications industry. The company has a P/E ratio of 45.7, equal to the average telecommunications industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 14.1% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Verizon Communications a buy, one analyst rates it a sell, and 18 rate it a hold.

TheStreet Ratings rates Verizon Communications as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Clearwire ( CLWR), up 70.8%, Dataram Corporation ( DRAM), up 17.2%, Sprint Nextel ( S), up 14.3%, and DragonWave ( DRWI), up 11.4%, were all gainers within the technology sector with Catamaran ( CTRX) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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