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.
CenturyLink (
CTL) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole was unchanged today. By the end of trading, CenturyLink rose 40 cents (1.1%) to $38.66 on average volume. Throughout the day, 5.4 million shares of CenturyLink exchanged hands as compared to its average daily volume of 5.5 million shares. The stock ranged in a price between $38.19-$38.95 after having opened the day at $38.25 as compared to the previous trading day's close of $38.26. Other companies within the Telecommunications industry that increased today were:
Motricity (
MOTR), up 15.3%,
Polycom (
PLCM), up 9.7%,
China TechFaith Wireless Comm Tech (
CNTF), up 7.5%, and
IDT Corporation Class B (
IDT), up 5.3%.
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CenturyLink, Inc. operates as an integrated telecommunications company in the United States. The company provides local and long-distance, network access, private line, public access, broadband, data, managed hosting, colocation, wireless, and video services to consumers and businesses. CenturyLink has a market cap of $24.01 billion and is part of the technology sector. The company has a P/E ratio of 48.8, above the average telecommunications industry P/E ratio of 47 and above the S&P 500 P/E ratio of 17.7. Shares are up 3.7% year to date as of the close of trading on Tuesday. Currently there are 14 analysts that rate CenturyLink a buy, no analysts rate it a sell, and five rate it a hold.
TheStreet Ratings rates CenturyLink as a
buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
On the negative front,
Trunkbow International Holdings (
TBOW), down 10.9%,
MER Telemanagement Solutions (
MTSL), down 7.8%,
Nexxus Lighting (
NEXS), down 4.7%, and
RRSat Global Communications Network (
RRST), down 4.5%, were all laggards within the telecommunications industry with
Qualcomm (
QCOM) 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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