Today's Technology Sector Featured Laggard: Sprint Nextel Corp (S)

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.

Sprint Nextel ( S) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.2%. By the end of trading, Sprint Nextel fell 11 cents (-1.8%) to $6.03 on average volume. Throughout the day, 48 million shares of Sprint Nextel exchanged hands as compared to its average daily volume of 36.1 million shares. The stock ranged in price between $6.01-$6.18 after having opened the day at $6.15 as compared to the previous trading day's close of $6.14. Other companies within the Technology sector that declined today were: Trina Solar ( TSL), down 10.8%, JA Solar Holdings Co. ADR ( JASO), down 10.7%, VirnetX ( VHC), down 10%, and Yingli Green Energy Holding Company ( YGE), down 9.7%.
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Sprint Nextel Corporation, through its subsidiaries, offers a range of wireless and wireline communications products and services to individual consumers, businesses, government subscribers, and resellers in the United States, Puerto Rico, and the U.S. Virgin Islands. Sprint Nextel has a market cap of $18.15 billion and is part of the telecommunications industry. Shares are up 6.9% year to date as of the close of trading on Friday. Currently there are six analysts that rate Sprint Nextel a buy, two analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Sprint Nextel as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk.

On the positive front, SemiLEDs ( LEDS), up 14.3%, Trio-Tech International ( TRT), up 13%, Crossroads Systems ( CRDS), up 11.4%, and Chyron Corporation ( CHYR), up 9.8%, were all gainers within the technology sector with Mobile Telesystems OJSC ( MBT) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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