AT&T Inc (T): 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.

AT&T ( T) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day down 0.1%. By the end of trading, AT&T rose 34 cents (1%) to $34.49 on average volume. Throughout the day, 23.8 million shares of AT&T exchanged hands as compared to its average daily volume of 26.8 million shares. The stock ranged in a price between $34.24-$34.69 after having opened the day at $34.25 as compared to the previous trading day's close of $34.15. Other companies within the Telecommunications industry that increased today were: Inteliquent ( IQNT), up 7.7%, City Telecom ( CTEL), up 7.5%, Ikanos Communications ( IKAN), up 7.3%, and Research in Motion ( RIMM), up 5.6%.
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AT&T Inc., together with its subsidiaries, provides telecommunications services to consumers, businesses, and other providers worldwide. AT&T has a market cap of $191.59 billion and is part of the technology sector. The company has a P/E ratio of 43.8, above the S&P 500 P/E ratio of 17.7. Shares are up 11.5% year to date as of the close of trading on Tuesday. Currently there are seven analysts that rate AT&T a buy, one analyst rates it a sell, and 21 rate it a hold.

TheStreet Ratings rates AT&T as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Parametric Sound ( PAMT), down 15.6%, eOn Communications Corporation ( EONC), down 9%, Blonder Tongue Laboratories ( BDR), down 8.3%, and Mahanagar Telephone Nigam ( MTE), down 6.5%, were all laggards within the telecommunications industry with Qualcomm ( QCOM) 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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