Qualcomm Inc. (QCOM): Today's Featured Telecommunications 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.

Qualcomm ( QCOM) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Qualcomm fell $1.30 (-1.9%) to $65.88 on average volume. Throughout the day, 16 million shares of Qualcomm exchanged hands as compared to its average daily volume of 12.2 million shares. The stock ranged in price between $65.53-$66.42 after having opened the day at $66.36 as compared to the previous trading day's close of $67.18. Other companies within the Telecommunications industry that declined today were: KVH Industries ( KVHI), down 14.1%, Level three Communications ( LVLT), down 13.3%, Alteva ( ALTV), down 13%, and Warwick Valley Telephone Company ( WVT), down 13%.
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QUALCOMM Incorporated designs, develops, manufactures, and markets digital telecommunications products and services. It operates in four segments: QCT, QTL, QWI, and QSI. Qualcomm has a market cap of $115.03 billion and is part of the technology sector. The company has a P/E ratio of 20, above the S&P 500 P/E ratio of 17.7. Shares are up 8.2% year to date as of the close of trading on Monday. Currently there are 31 analysts that rate Qualcomm a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Qualcomm as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Zhone Technologies ( ZHNE), up 13.2%, CalAmp Corporation ( CAMP), up 11%, Gilat Satellite Networks ( GILT), up 8.5%, and Inteliquent ( IQNT), up 8.1%, were all gainers within the telecommunications industry with AT&T ( T) being today's featured telecommunications industry leader.

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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