VeriSign Inc. (VRSN): 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.

VeriSign ( VRSN) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 0.8%. By the end of trading, VeriSign fell 54 cents (-1.2%) to $45.76 on light volume. Throughout the day, 1.9 million shares of VeriSign exchanged hands as compared to its average daily volume of 3.1 million shares. The stock ranged in price between $45.72-$46.49 after having opened the day at $46.33 as compared to the previous trading day's close of $46.30. Other companies within the Telecommunications industry that declined today were: Maxcom Telecomunicaciones S.A.B. de C.V ( MXT), down 7.9%, Alvarion ( ALVR), down 6.7%, magicJack VocalTec ( CALL), down 5.8%, and Ambient Corporation ( AMBT), down 4.1%.
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VeriSign, Inc. provides Internet infrastructure services to various networks worldwide. It offers registry services that operate the authoritative directory of .com, .net, .cc, .tv, and .name domain names, as well as the back-end systems for various for all .gov, .jobs, and .edu domain names. VeriSign has a market cap of $7.08 billion and is part of the technology sector. The company has a P/E ratio of 24.3, above the S&P 500 P/E ratio of 17.7. Shares are up 19.3% year to date as of the close of trading on Wednesday. Currently there are two analysts that rate VeriSign a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates VeriSign as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

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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