CenturyLink Inc (CTL): 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.

CenturyLink ( CTL) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day down 2.1%. By the end of trading, CenturyLink fell 61 cents (-1.6%) to $37.88 on average volume. Throughout the day, 5.4 million shares of CenturyLink exchanged hands as compared to its average daily volume of 5.4 million shares. The stock ranged in price between $37.55-$38.39 after having opened the day at $38.23 as compared to the previous trading day's close of $38.49. Other companies within the Telecommunications industry that declined today were: Telephone and Data Systems ( TDS), down 16.6%, United States Cellular Corporation ( USM), down 12.4%, Sonus Networks ( SONS), down 10.5%, and ARC Group Worldwide ( ARCW), down 10.4%.
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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 $23.93 billion and is part of the technology sector. The company has a P/E ratio of 48.6, above the S&P 500 P/E ratio of 17.7. Shares are up 3.3% 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 four 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 positive front, China TechFaith Wireless Comm Tech ( CNTF), up 11.3%, Ciena Corporation ( CIEN), up 9.6%, Telular Corporation ( WRLS), up 8.9%, and EXFO ( EXFO), up 7%, were all gainers within the telecommunications industry with American Tower ( AMT) 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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