Siemens AG (SI): 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.

Siemens ( SI) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day up 0.7%. By the end of trading, Siemens rose $1.62 (1.6%) to $103.02 on average volume. Throughout the day, 680,823 shares of Siemens exchanged hands as compared to its average daily volume of 480,800 shares. The stock ranged in a price between $100.57-$103.09 after having opened the day at $100.79 as compared to the previous trading day's close of $101.40. Other companies within the Telecommunications industry that increased today were: DragonWave ( DRWI), up 19.6%, Parametric Sound ( PAMT), up 15.8%, Envivio ( ENVI), up 9.7%, and NTS ( NTS), up 6.5%.
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Siemens Aktiengesellschaft, an electronics and electrical engineering company, operates in the industry, energy, healthcare, and infrastructure and cities sectors worldwide. Siemens has a market cap of $86.85 billion and is part of the technology sector. The company has a P/E ratio of 32.1, above the S&P 500 P/E ratio of 17.7. Shares are up 6.1% year to date as of the close of trading on Tuesday. Currently there are no analysts that rate Siemens a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Siemens as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins and feeble growth in the company's earnings per share.

On the negative front, UniTek Global Services ( UNTK), down 7.8%, Motricity ( MOTR), down 6.7%, Dialogic ( DLGC), down 5.7%, and Vicon Industries ( VII), down 4.6%, were all laggards within the telecommunications industry with MetroPCS Communications ( PCS) 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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