Dow Today: Cisco Systems (CSCO) Leads The Day Higher, AT&T (T) Lags

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.

The Dow Jones Industrial Average ( ^DJI) is trading down 157.0 points (-1.2%) at 13,088 as of Wednesday, Nov 7, 2012, 9:35 a.m. ET. During this time, 50.2 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 582.4 million. The NYSE advances/declines ratio sits at 399 issues advancing vs. 2,356 declining with 87 unchanged.
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The Dow component leading the way higher looks to be Cisco Systems (Nasdaq: CSCO), which is sporting a 13-cent gain (+0.7%) bringing the stock to $17.61. Volume for Cisco Systems currently sits at 2.9 million shares traded vs. an average daily trading volume of 38.8 million shares.

Cisco Systems has a market cap of $92.26 billion and is part of the technology sector and computer hardware industry. Shares are down 3.8% year to date as of Tuesday's close. The stock's dividend yield sits at 3.2%.

Cisco Systems, Inc. designs, manufactures, and sells Internet protocol (IP) based networking and other products related to the communications and information technology industries worldwide. The company has a P/E ratio of 11.7, below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Cisco Systems as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and attractive valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Holding back the Dow today is AT&T (NYSE: T), which is lagging the broader Dow index with a $1.42 decline (-4.1%) bringing the stock to $33.38. This single loss is lowering the Dow Jones Industrial Average by 10.75 points or roughly accounting for 6.8% of the Dow's overall loss. Volume for AT&T currently sits at 4.3 million shares traded vs. an average daily trading volume of 24.7 million shares.

AT&T has a market cap of $197.83 billion and is part of the technology sector and telecommunications industry. Shares are up 15.2% year to date as of Tuesday's close. The stock's dividend yield sits at 5.1%.

AT&T Inc., together with its subsidiaries, provides telecommunications services to consumers, businesses, and other providers worldwide. The company has a P/E ratio of 45.2, above the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates AT&T as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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