Windstream Corp (WIN): 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.

Windstream ( WIN) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 0.6%. By the end of trading, Windstream fell 12 cents (-1.4%) to $8.52 on heavy volume. Throughout the day, 14.5 million shares of Windstream exchanged hands as compared to its average daily volume of 8.6 million shares. The stock ranged in price between $8.35-$8.64 after having opened the day at $8.63 as compared to the previous trading day's close of $8.64. Other companies within the Telecommunications industry that declined today were: eOn Communications Corporation ( EONC), down 8.9%, I.D. Systems ( IDSY), down 7.7%, Sky-mobi ( MOBI), down 6.6%, and FairPoint Communications ( FRP), down 6.3%.
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Windstream Corporation provides communications and technology solutions in the United States. The company offers managed services and cloud computing services to businesses, as well as broadband, voice, and video services to consumers primarily in rural markets. Windstream has a market cap of $5.13 billion and is part of the technology sector. The company has a P/E ratio of 31, above the S&P 500 P/E ratio of 17.7. Shares are up 4.3% year to date as of the close of trading on Wednesday. Currently there are five analysts that rate Windstream a buy, two analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Windstream as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.

On the positive front, Ciena Corporation ( CIEN), up 17.3%, Technical Communications ( TCCO), up 14.6%, Net Element International ( NETE), up 12.3%, and JDS Uniphase Corp (CA ( JDSU), up 7.6%, were all gainers within the telecommunications industry with Nokia Oyj ( NOK) 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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