Telefonica Brasil S.A. (VIV): Technology's Featured Underachiever 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.

Telefonica Brasil S.A ( VIV) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.3%. By the end of trading, Telefonica Brasil S.A fell 27 cents (-1%) to $26.06 on average volume. Throughout the day, 1.3 million shares of Telefonica Brasil S.A exchanged hands as compared to its average daily volume of 1.2 million shares. The stock ranged in price between $26.04-$26.39 after having opened the day at $26.31 as compared to the previous trading day's close of $26.33. Other companies within the Technology sector that declined today were: iGo ( IGOI), down 35.6%, Exa ( EXA), down 8.8%, Uni-pixel ( UNXL), down 8.6%, and EXFO ( EXFO), down 8.5%.
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Telefonica Brasil S.A. provides fixed-line telecommunications services to residential and commercial customers in Brazil. Telefonica Brasil S.A has a market cap of $29.97 billion and is part of the telecommunications industry. The company has a P/E ratio of 6.5, below the S&P 500 P/E ratio of 17.7. Shares are up 9.4% year to date as of the close of trading on Monday. Currently there are five analysts that rate Telefonica Brasil S.A a buy, one analyst rates it a sell, and one rates it a hold.

TheStreet Ratings rates Telefonica Brasil S.A as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the positive front, BOS Better Online Solutions ( BOSC), up 47.8%, Technical Communications ( TCCO), up 18.9%, China Information Technology ( CNIT), up 14.8%, and Suntech Power Holdings ( STP), up 13.9%, were all gainers within the technology sector with EMC Corporation ( EMC) 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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