MetroPCS Communications Inc (PCS): 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.

MetroPCS Communications ( PCS) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day down 0.3%. By the end of trading, MetroPCS Communications rose 24 cents (2.1%) to $11.88 on average volume. Throughout the day, 10.3 million shares of MetroPCS Communications exchanged hands as compared to its average daily volume of 11.3 million shares. The stock ranged in a price between $11.50-$11.91 after having opened the day at $11.76 as compared to the previous trading day's close of $11.64. Other companies within the Telecommunications industry that increased today were: Motricity ( MOTR), up 15%, WPCS International ( WPCS), up 11.1%, MER Telemanagement Solutions ( MTSL), up 8.5%, and RRSat Global Communications Network ( RRST), up 6.3%.
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MetroPCS Communications, Inc., a wireless telecommunications carrier, together with its subsidiaries, provides wireless broadband mobile services in the United States. MetroPCS Communications has a market cap of $4.38 billion and is part of the technology sector. The company has a P/E ratio of 13.4, above the average telecommunications industry P/E ratio of 13.2 and below the S&P 500 P/E ratio of 17.7. Shares are up 34.1% year to date as of the close of trading on Thursday. Currently there are four analysts that rate MetroPCS Communications a buy, one analyst rates it a sell, and 15 rate it a hold.

TheStreet Ratings rates MetroPCS Communications as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, compelling growth in net income and expanding profit margins. 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 negative front, Nexxus Lighting ( NEXS), down 11.3%, Globalstar Incorporated ( GSAT), down 9.3%, Trunkbow International Holdings ( TBOW), down 7.5%, and magicJack VocalTec ( CALL), down 5.7%, were all laggards within the telecommunications industry with Harris Corporation ( HRS) being today's telecommunications industry laggard.

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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