Research In Motion Ltd (RIMM): 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.

Research in Motion ( RIMM) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day up 0.3%. By the end of trading, Research in Motion rose 34 cents (4.2%) to $8.54 on average volume. Throughout the day, 20.7 million shares of Research in Motion exchanged hands as compared to its average daily volume of 22.1 million shares. The stock ranged in a price between $8.20-$8.70 after having opened the day at $8.20 as compared to the previous trading day's close of $8.20. Other companies within the Telecommunications industry that increased today were: Ubiquiti Networks ( UBNT), up 10.4%, ARC Group Worldwide ( ARCW), up 9.6%, magicJack VocalTec ( CALL), up 9.6%, and Mahanagar Telephone Nigam ( MTE), up 9.1%.
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Research In Motion Limited designs, manufactures, and markets wireless solutions for the mobile communications market worldwide. Research in Motion has a market cap of $4.25 billion and is part of the technology sector. The company has a P/E ratio of -7, below the S&P 500 P/E ratio of 17.7. Shares are down 43.2% year to date as of the close of trading on Thursday. Currently there are three analysts that rate Research in Motion a buy, 13 analysts rate it a sell, and 18 rate it a hold.

TheStreet Ratings rates Research in Motion 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 and generally disappointing historical performance in the stock itself.

On the negative front, NTS ( NTS), down 9.1%, Phazar Corporation ( ANTP), down 8.4%, Novatel Wireless ( NVTL), down 7.5%, and Otelco ( OTT), down 6.6%, were all laggards within the telecommunications industry with Sprint Nextel ( S) 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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