Frontier Communications Corp Class B (FTR): 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.

Frontier Communications Corp Class B ( FTR) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Frontier Communications Corp Class B fell 9 cents (-1.9%) to $4.55 on heavy volume. Throughout the day, 24.9 million shares of Frontier Communications Corp Class B exchanged hands as compared to its average daily volume of 9.3 million shares. The stock ranged in price between $4.15-$4.70 after having opened the day at $4.64 as compared to the previous trading day's close of $4.64. Other companies within the Telecommunications industry that declined today were: Trunkbow International Holdings ( TBOW), down 11.6%, Nexxus Lighting ( NEXS), down 9.2%, Cbeyond ( CBEY), down 8.6%, and Parametric Sound ( PAMT), down 7.3%.
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Frontier Communications Corporation provides communications services for residential and business customers in the United States. Frontier Communications Corp Class B has a market cap of $4.5 billion and is part of the technology sector. The company has a P/E ratio of 45.1, above the S&P 500 P/E ratio of 17.7. Shares are down 12.4% year to date as of the close of trading on Monday. Currently there are six analysts that rate Frontier Communications Corp Class B a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Frontier Communications Corp Class B as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

On the positive front, Motricity ( MOTR), up 11.3%, CalAmp Corporation ( CAMP), up 9.2%, WPCS International ( WPCS), up 8%, and Towerstream Corporation ( TWER), up 6.4%, were all gainers within the telecommunications industry with Siemens ( SI) 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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