Today's Telecommunications Industry Featured Laggard: America Movil S.A.B. De C.V. (AMX)

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.

America Movil S.A.B. de C.V ( AMX) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 0.4%. By the end of trading, America Movil S.A.B. de C.V fell 24 cents (-1.1%) to $20.96 on light volume. Throughout the day, 6.9 million shares of America Movil S.A.B. de C.V exchanged hands as compared to its average daily volume of 10.7 million shares. The stock ranged in price between $20.73-$21.25 after having opened the day at $20.88 as compared to the previous trading day's close of $21.20. Other companies within the Telecommunications industry that declined today were: Envivio ( ENVI), down 7.1%, InfoSonics Corporation ( IFON), down 5.3%, I.D. Systems ( IDSY), down 5.2%, and Alvarion ( ALVR), down 5.1%.
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America Movil, S.A.B. de C.V. provides telecommunications services primarily in the United States, Latin America, and the Caribbean. The company offers mobile and fixed voice services, including airtime, local, long-distance, public telephony, and network interconnection services. America Movil S.A.B. de C.V has a market cap of $80.36 billion and is part of the technology sector. The company has a P/E ratio of 11.7, below the S&P 500 P/E ratio of 17.7. Shares are down 8.4% year to date as of the close of trading on Wednesday. Currently there are four analysts that rate America Movil S.A.B. de C.V a buy, one analyst rates it a sell, and seven rate it a hold.

TheStreet Ratings rates America Movil S.A.B. de C.V as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.

On the positive front, Parametric Sound ( PAMT), up 18.8%, MER Telemanagement Solutions ( MTSL), up 8.1%, Elephant Talk Communications ( ETAK), up 7%, and MERU Networks ( MERU), up 6.8%, were all gainers within the telecommunications industry with Harris Corporation ( HRS) 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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