MetroPCS Communications Inc (PCS): Today's Featured Telecommunications Winner

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.

MetroPCS Communications ( PCS) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day down 0.7%. By the end of trading, MetroPCS Communications rose 15 cents (1.5%) to $9.98 on light volume. Throughout the day, 6.5 million shares of MetroPCS Communications exchanged hands as compared to its average daily volume of 13.2 million shares. The stock ranged in a price between $9.94-$10.24 after having opened the day at $10.11 as compared to the previous trading day's close of $9.83. Other companies within the Telecommunications industry that increased today were: Nexxus Lighting ( NEXS), up 14.6%, MER Telemanagement Solutions ( MTSL), up 13.1%, Trunkbow International Holdings ( TBOW), up 11.7%, and I.D. Systems ( IDSY), up 11.1%.
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MetroPCS Communications, Inc., a wireless telecommunications carrier, together with its subsidiaries, provides wireless broadband mobile services in the United States. MetroPCS Communications has a market cap of $3.71 billion and is part of the technology sector. The company has a P/E ratio of 8.2, below the S&P 500 P/E ratio of 17.7. Shares are up 17.4% year to date as of the close of trading on Wednesday. Currently there are three analysts that rate MetroPCS Communications a buy, two analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates MetroPCS Communications as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and attractive valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Inteliquent ( IQNT), down 17.7%, Novatel Wireless ( NVTL), down 14.6%, eOn Communications Corporation ( EONC), down 14.4%, and Elephant Talk Communications ( ETAK), down 13.3%, were all laggards within the telecommunications industry with AT&T ( T) 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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