CenturyLink Inc (CTL): Today's Featured Technology 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.

CenturyLink ( CTL) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.1%. By the end of trading, CenturyLink fell 40 cents (-1%) to $38.88 on heavy volume. Throughout the day, 7.8 million shares of CenturyLink exchanged hands as compared to its average daily volume of 4.8 million shares. The stock ranged in price between $38.84-$39.48 after having opened the day at $39.31 as compared to the previous trading day's close of $39.28. Other companies within the Technology sector that declined today were: WPCS International ( WPCS), down 21.3%, Bridgeline Digital ( BLIN), down 20%, TIBCO Software ( TIBX), down 19.1%, and Maxcom Telecomunicaciones S.A.B. de C.V ( MXT), down 17.2%.
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CenturyLink, Inc. operates as an integrated telecommunications company in the United States. The company provides local and long-distance, network access, private line, public access, broadband, data, managed hosting, colocation, wireless, and video services to consumers and businesses. CenturyLink has a market cap of $24.46 billion and is part of the telecommunications industry. The company has a P/E ratio of 38, above the S&P 500 P/E ratio of 17.7. Shares are up 5.3% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate CenturyLink a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates CenturyLink as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations, growth in earnings per share, expanding profit margins and notable return on equity. 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 positive front, Renewable Energy Trade Board ( EBOD), up 101.8%, Mitek Systems ( MITK), up 34.2%, TranSwitch Corporation ( TXCC), up 15.1%, and Nokia Oyj ( NOK), up 12.8%, were all gainers within the technology sector with ASML ( ASML) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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