NII Holdings Inc (NIHD): 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.

NII Holdings ( NIHD) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 1.1%. By the end of trading, NII Holdings fell 29 cents (-3.6%) to $7.69 on light volume. Throughout the day, 3.9 million shares of NII Holdings exchanged hands as compared to its average daily volume of 5.8 million shares. The stock ranged in price between $7.61-$8.17 after having opened the day at $7.66 as compared to the previous trading day's close of $7.98. Other companies within the Telecommunications industry that declined today were: Motricity ( MOTR), down 12.3%, Powerwave Technologies ( PWAV), down 11%, B Communications ( BCOM), down 7%, and Shenandoah Telecommunications ( SHEN), down 6.9%.
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NII Holdings, Inc., through its subsidiaries, provides wireless communication services under the Nextel brand name to businesses and individuals in Mexico, Brazil, Argentina, Peru, and Chile. NII Holdings has a market cap of $1.25 billion and is part of the technology sector. The company has a P/E ratio of -11, below the S&P 500 P/E ratio of 17.7. Shares are down 62.5% year to date as of the close of trading on Wednesday. Currently there are six analysts that rate NII Holdings a buy, two analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates NII Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally high debt management risk.

On the positive front, WPCS International ( WPCS), up 12.2%, Zhone Technologies ( ZHNE), up 11.3%, Research in Motion ( RIMM), up 9.8%, and Trunkbow International Holdings ( TBOW), up 9.3%, were all gainers within the telecommunications industry with AT&T ( T) 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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