AT&T Inc (T): 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.

AT&T ( T) 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, AT&T fell 43 cents (-1.2%) to $36.43 on heavy volume. Throughout the day, 48.7 million shares of AT&T exchanged hands as compared to its average daily volume of 25.3 million shares. The stock ranged in price between $36.24-$36.70 after having opened the day at $36.62 as compared to the previous trading day's close of $36.86. Other companies within the Telecommunications industry that declined today were: 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%.
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AT&T Inc. provides telecommunications services to consumers, businesses, and other providers in the United States and internationally. The company operates in three segments: Wireless, Wireline, and Other. AT&T has a market cap of $202.34 billion and is part of the technology sector. The company has a P/E ratio of 29.3, above the S&P 500 P/E ratio of 17.7. Shares are up 9.3% year to date as of the close of trading on Thursday. Currently there are nine analysts that rate AT&T a buy, two analysts rate it a sell, and 16 rate it a hold.

TheStreet Ratings rates AT&T 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 good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, Cbeyond ( CBEY), up 7.4%, Parametric Sound ( PAMT), up 7.3%, DSP Group ( DSPG), up 5.6%, and WPCS International ( WPCS), up 4.9%, were all gainers within the telecommunications industry with Polycom ( PLCM) 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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