Qualcomm Inc. (QCOM): 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.

Qualcomm ( QCOM) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day up 0.2%. By the end of trading, Qualcomm rose 65 cents (1.1%) to $61.93 on average volume. Throughout the day, 15.5 million shares of Qualcomm exchanged hands as compared to its average daily volume of 11.2 million shares. The stock ranged in a price between $60.75-$62.03 after having opened the day at $61.38 as compared to the previous trading day's close of $61.28. Other companies within the Telecommunications industry that increased today were: Blonder Tongue Laboratories ( BDR), up 14.4%, Elephant Talk Communications ( ETAK), up 14%, Ubiquiti Networks ( UBNT), up 10.1%, and UTStarcom Holdings ( UTSI), up 8.2%.
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QUALCOMM Incorporated designs, develops, manufactures, and markets digital telecommunications products and services. Qualcomm has a market cap of $105.18 billion and is part of the technology sector. The company has a P/E ratio of 20.2, above the S&P 500 P/E ratio of 17.7. Shares are up 12.8% year to date as of the close of trading on Thursday. Currently there are 33 analysts that rate Qualcomm a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Qualcomm as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year, growth in earnings per share and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, eOn Communications Corporation ( EONC), down 15.1%, NTS ( NTS), down 13.6%, Dialogic ( DLGC), down 8.7%, and Multiband Corporation ( MBND), down 7.9%, 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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