Polycom Inc. (PLCM): 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.

Polycom ( PLCM) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day down 0.7%. By the end of trading, Polycom rose 33 cents (3.1%) to $10.89 on heavy volume. Throughout the day, 5.3 million shares of Polycom exchanged hands as compared to its average daily volume of 2.9 million shares. The stock ranged in a price between $10.60-$11 after having opened the day at $10.62 as compared to the previous trading day's close of $10.56. Other companies within the Telecommunications industry that increased today were: Cbeyond ( CBEY), up 7.4%, Parametric Sound ( PAMT), up 7.3%, DSP Group ( DSPG), up 5.6%, and WPCS International ( WPCS), up 4.9%.
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Polycom, Inc. provides standards-based unified communications and collaboration (UC&C) solutions for voice and video collaboration. Polycom has a market cap of $1.77 billion and is part of the technology sector. Shares are up 1% year to date as of the close of trading on Thursday. Currently there is one analyst that rates Polycom a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Polycom as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

On the negative front, China TechFaith Wireless Comm Tech ( CNTF), down 9.8%, Mitel Networks Corporation ( MITL), down 8%, UTStarcom Holdings ( UTSI), down 7.4%, and Elephant Talk Communications ( ETAK), down 7.4%, were all laggards within the telecommunications industry with AT&T ( T) 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).

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