Sprint Nextel Corp (S): 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.

Sprint Nextel ( S) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Sprint Nextel fell 6 cents (-1.1%) to $5.55 on light volume. Throughout the day, 43.7 million shares of Sprint Nextel exchanged hands as compared to its average daily volume of 79 million shares. The stock ranged in price between $5.51-$5.60 after having opened the day at $5.55 as compared to the previous trading day's close of $5.61. Other companies within the Telecommunications industry that declined today were: NTS ( NTS), down 9.1%, Phazar Corporation ( ANTP), down 8.4%, Novatel Wireless ( NVTL), down 7.5%, and Otelco ( OTT), down 6.6%.
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Sprint Nextel Corporation, together with its subsidiaries, offers wireless and wireline communications products and services to individual consumers, businesses, government subscribers, and resellers in the United States, Puerto Rico, and the United States Virgin Islands. Sprint Nextel has a market cap of $16.88 billion and is part of the technology sector. The company has a P/E ratio of -3.9, below the S&P 500 P/E ratio of 17.7. Shares are up 139.7% year to date as of the close of trading on Thursday. Currently there are nine analysts that rate Sprint Nextel a buy, two analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Sprint Nextel as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk.

On the positive front, 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%, were all gainers within the telecommunications industry with Research in Motion ( RIMM) 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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