SK Telecom Co. Ltd. (SKM): Telecommunications' Featured Underperformer Of The Day

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.

SK Telecom ( SKM) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day down 0.9%. By the end of trading, SK Telecom fell 60 cents (-3.3%) to $17.65 on average volume. Throughout the day, 1.6 million shares of SK Telecom exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in price between $17.64-$17.92 after having opened the day at $17.89 as compared to the previous trading day's close of $18.25. Other companies within the Telecommunications industry that declined today were: Elephant Talk Communications ( ETAK), down 11.5%, Dialogic ( DLGC), down 10.8%, NII Holdings ( NIHD), down 8.5%, and Ambient Corporation ( AMBT), down 8%.
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SK Telecom Co., Ltd. provides wireless telecommunications services principally in Korea. SK Telecom has a market cap of $11.41 billion and is part of the technology sector. The company has a P/E ratio of 8.5, below the S&P 500 P/E ratio of 17.7. Shares are up 16.2% year to date as of the close of trading on Wednesday. Currently there are two analysts that rate SK Telecom a buy, one analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates SK Telecom as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, magicJack VocalTec ( CALL), up 6%, MER Telemanagement Solutions ( MTSL), up 5.9%, America Movil S.A.B. de C.V ( AMX), up 4%, and Otelco ( OTT), up 3.9%, were all gainers within the telecommunications industry with Research in Motion ( BBRY) 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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