Sprint Nextel Corp (S): 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.

Sprint Nextel ( S) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day down 0.7%. By the end of trading, Sprint Nextel fell 6 cents (-1%) to $5.80 on light volume. Throughout the day, 16.2 million shares of Sprint Nextel exchanged hands as compared to its average daily volume of 38.7 million shares. The stock ranged in price between $5.80-$5.87 after having opened the day at $5.85 as compared to the previous trading day's close of $5.86. Other companies within the Telecommunications industry that declined today were: Telecom Argentina ( TEO), down 15.2%, Nortel Inversora ( NTL), down 12.1%, NII Holdings ( NIHD), down 11.4%, and Vocera Communications ( VCRA), down 9.3%.
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Sprint Nextel Corporation, together with its subsidiaries, offers wireless and wireline communications products and services to individual consumers, businesses, government subscribers, and resellers in the United States, Puerto Rico, and the United States Virgin Islands. Sprint Nextel has a market cap of $17.37 billion and is part of the technology sector. Shares are up 3.4% year to date as of the close of trading on Wednesday. Currently there are six analysts that rate Sprint Nextel a buy, two analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates Sprint Nextel as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk.

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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