Frontier Communications Corp Class B (FTR) In The Telecommunications Spotlight Today

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.

Frontier Communications Corp Class B ( FTR) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day down 0.9%. By the end of trading, Frontier Communications Corp Class B rose 7 cents (1.8%) to $4 on average volume. Throughout the day, nine million shares of Frontier Communications Corp Class B exchanged hands as compared to its average daily volume of 10 million shares. The stock ranged in a price between $3.90-$4.02 after having opened the day at $3.91 as compared to the previous trading day's close of $3.93. Other companies within the Telecommunications industry that increased today were: NII Holdings ( NIHD), up 21.4%, magicJack VocalTec ( CALL), up 5.3%, Alvarion ( ALVR), up 5.1%, and Sonus Networks ( SONS), up 4.7%.
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Frontier Communications Corporation, a communications company, provides regulated and unregulated voice, data, and video services to business, residential, and wholesale customers in the United States. Frontier Communications Corp Class B has a market cap of $3.89 billion and is part of the technology sector. The company has a P/E ratio of 30, above the S&P 500 P/E ratio of 17.7. Shares are down 8.2% year to date as of the close of trading on Tuesday. Currently there are five analysts that rate Frontier Communications Corp Class B a buy, one analyst rates it a sell, and seven rate it a hold.

TheStreet Ratings rates Frontier Communications Corp Class B as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

On the negative front, eOn Communications Corporation ( EONC), down 16%, Dialogic ( DLGC), down 12%, AudioCodes ( AUDC), down 11.2%, and Multiband Corporation ( MBND), down 8.6%, were all laggards within the telecommunications industry with Verizon Communications ( VZ) 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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