Frontier Communications Corp Class B (FTR): 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.

Frontier Communications Corp Class B ( FTR) 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, Frontier Communications Corp Class B rose 9 cents (2%) to $4.57 on average volume. Throughout the day, 9.9 million shares of Frontier Communications Corp Class B exchanged hands as compared to its average daily volume of 11.1 million shares. The stock ranged in a price between $4.45-$4.57 after having opened the day at $4.48 as compared to the previous trading day's close of $4.48. Other companies within the Telecommunications industry that increased today were: JDS Uniphase Corp (CA ( JDSU), up 17%, Ericsson Telephone Company ( ERIC), up 8.7%, Cellcom Israel ( CEL), up 7.7%, and Infinera Corporation ( INFN), up 7.5%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Frontier Communications Corporation provides communications services for residential and business customers in the United States. Frontier Communications Corp Class B has a market cap of $4.5 billion and is part of the technology sector. The company has a P/E ratio of 30.5, above the S&P 500 P/E ratio of 17.7. Shares are up 6.8% year to date as of the close of trading on Wednesday. Currently there are five analysts that rate Frontier Communications Corp Class B a buy, one analyst rates it a sell, and seven rate it a hold.

TheStreet Ratings rates Frontier Communications Corp Class B as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and generally higher debt management risk.

On the negative front, ShoreTel ( SHOR), down 9.7%, Towerstream Corporation ( TWER), down 6.9%, MERU Networks ( MERU), down 6.5%, and Zoom Technologies ( ZOOM), down 6.3%, were all laggards within the telecommunications industry with Nokia Oyj ( NOK) 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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.

null

More from Markets

50 Stocks Goldman Sachs Thinks Can Triumph Over Labor Inflation

50 Stocks Goldman Sachs Thinks Can Triumph Over Labor Inflation

Trump Issues New Trade Threats, Apple, ZTE, GameStop - 5 Things You Must Know

Trump Issues New Trade Threats, Apple, ZTE, GameStop - 5 Things You Must Know

China-Focused Stocks Hit Hard as Beijing Responds to Trump Tariff Threats

China-Focused Stocks Hit Hard as Beijing Responds to Trump Tariff Threats

Dow Futures Plunge, Global Markets Rocked as Trump Takes Trade War to Next Level

Dow Futures Plunge, Global Markets Rocked as Trump Takes Trade War to Next Level

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China