Strong Performance Today In Telecommunications From Qualcomm Inc. (QCOM)

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.

Qualcomm ( QCOM) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day up 0.4%. By the end of trading, Qualcomm rose 70 cents (1.1%) to $65.86 on light volume. Throughout the day, 5.5 million shares of Qualcomm exchanged hands as compared to its average daily volume of 11.3 million shares. The stock ranged in a price between $65.09-$65.86 after having opened the day at $65.14 as compared to the previous trading day's close of $65.16. Other companies within the Telecommunications industry that increased today were: NII Holdings ( NIHD), up 15.5%, Net Element International ( NETE), up 11.7%, RRSat Global Communications Network ( RRST), up 9.2%, and Partner Communications Company ( PTNR), up 4.9%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

QUALCOMM Incorporated designs, develops, manufactures, and markets digital telecommunications products and services. It operates in four segments: QCT, QTL, QWI, and QSI. Qualcomm has a market cap of $113.07 billion and is part of the technology sector. The company has a P/E ratio of 19.7, above the S&P 500 P/E ratio of 17.7. Shares are up 5.3% year to date as of the close of trading on Friday. Currently there are 24 analysts that rate Qualcomm a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Qualcomm as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, eOn Communications Corporation ( EONC), down 14.5%, WPCS International ( WPCS), down 9.9%, Parametric Sound ( PAMT), down 9.1%, and Ceragon Networks ( CRNT), down 7.8%, were all laggards within the telecommunications industry with Nokia Oyj ( NOK) 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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100% See his top picks for 14-days FREE.
null

If you liked this article you might like

Broadcom Dealt a New Blow in Battle to Buy Qualcomm

Broadcom Dealt a New Blow in Battle to Buy Qualcomm

Closing Bell: LIVE MARKETS BLOG

Closing Bell: LIVE MARKETS BLOG

Qualcomm-Broadcom Talks Productive But Still Unfruitful

Qualcomm-Broadcom Talks Productive But Still Unfruitful

Goldman Bankers (Mostly) Upbeat on Tech M&A and IPO Trends

Goldman Bankers (Mostly) Upbeat on Tech M&A and IPO Trends

Clearly, Warren Buffett Loves Apple's Stock

Clearly, Warren Buffett Loves Apple's Stock