Siemens AG (SI): Today's Favorite Telecommunications Gainer

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.

Siemens ( SI) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day up 0.1%. By the end of trading, Siemens rose $2.08 (1.9%) to $109.78 on average volume. Throughout the day, 380,380 shares of Siemens exchanged hands as compared to its average daily volume of 302,500 shares. The stock ranged in a price between $109.02-$110.36 after having opened the day at $109.15 as compared to the previous trading day's close of $107.70. Other companies within the Telecommunications industry that increased today were: Technical Communications ( TCCO), up 18.9%, Parametric Sound ( PAMT), up 13.7%, DragonWave ( DRWI), up 9.6%, and B Communications ( BCOM), up 8.5%.
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Siemens Aktiengesellschaft, an electronics and electrical engineering company, operates in the energy, healthcare, industry, and infrastructure and cities sectors worldwide. Siemens has a market cap of $90.85 billion and is part of the industrial goods sector. The company has a P/E ratio of 32.1, above the S&P 500 P/E ratio of 17.7. Shares are down 1.6% year to date as of the close of trading on Monday. Currently there are two analysts that rate Siemens a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Siemens as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, EXFO ( EXFO), down 8.5%, Ikanos Communications ( IKAN), down 7.9%, Glowpoint ( GLOW), down 7.8%, and Envivio ( ENVI), down 5.9%, were all laggards within the telecommunications industry with Ericsson Telephone Company ( ERIC) 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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