Telecommunications Industry's Featured Straggler Of The Day: Mobile Telesystems OJSC (MBT)

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.

Mobile Telesystems OJSC ( MBT) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Mobile Telesystems OJSC fell 65 cents (-3.2%) to $19.84 on average volume. Throughout the day, 3.2 million shares of Mobile Telesystems OJSC exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in price between $19.80-$20.21 after having opened the day at $20.11 as compared to the previous trading day's close of $20.49. Other companies within the Telecommunications industry that declined today were: Elephant Talk Communications ( ETAK), down 17%, NII Holdings ( NIHD), down 10.1%, Net Element International ( NETE), down 8.5%, and Parametric Sound ( PAMT), down 7.7%.
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Mobile TeleSystems OJSC, together with its subsidiaries, provides telecommunications services primarily in the Russian Federation, Ukraine, Uzbekistan, Armenia, and Belarus. Mobile Telesystems OJSC has a market cap of $20.66 billion and is part of the technology sector. The company has a P/E ratio of 14.2, below the S&P 500 P/E ratio of 17.7. Shares are up 9.9% year to date as of the close of trading on Wednesday. Currently there are five analysts that rate Mobile Telesystems OJSC a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Mobile Telesystems OJSC as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Alcatel-Lucent ( ALU), up 10.2%, Ikanos Communications ( IKAN), up 9.9%, Telecom Italia SpA ADR ( TI.A), up 9.4%, and Telecom Italia SpA ( TI), up 8.4%, were all gainers within the telecommunications industry with AT&T ( T) 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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