Ericsson Telephone Company (ERIC): 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.

Ericsson Telephone Company ( ERIC) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.2%. By the end of trading, Ericsson Telephone Company fell 17 cents (-1.7%) to $9.64 on light volume. Throughout the day, 2.7 million shares of Ericsson Telephone Company exchanged hands as compared to its average daily volume of 3.8 million shares. The stock ranged in price between $9.62-$9.74 after having opened the day at $9.72 as compared to the previous trading day's close of $9.81. Other companies within the Technology sector that declined today were: Parametric Sound ( PAMT), down 15.6%, Dataram Corporation ( DRAM), down 14.5%, Authentidate Holding Corporation ( ADAT), down 13.1%, and Pactera Technology International ( PACT), down 12.7%.
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Ericsson provides communications equipment, professional services, and multimedia solutions to mobile and fixed networks operators worldwide. Ericsson Telephone Company has a market cap of $32.36 billion and is part of the telecommunications industry. The company has a P/E ratio of 15.8, below the S&P 500 P/E ratio of 17.7. Shares are down 3.4% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate Ericsson Telephone Company a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates Ericsson Telephone Company as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

On the positive front, Daystar Technologies ( DSTI), up 41%, ReneSola ( SOL), up 31.7%, Daqo New Energy ( DQ), up 31.3%, and Spire Corporation ( SPIR), up 29.2%, were all gainers within the technology sector with Research in Motion ( RIMM) 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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