Declines From Nokia Oyj (NOK) Drive Down Telecommunications Industry

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.

Nokia Oyj ( NOK) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Nokia Oyj fell 5 cents (-1.5%) to $3.29 on light volume. Throughout the day, 20.8 million shares of Nokia Oyj exchanged hands as compared to its average daily volume of 55.6 million shares. The stock ranged in price between $3.28-$3.34 after having opened the day at $3.31 as compared to the previous trading day's close of $3.34. Other companies within the Telecommunications industry that declined today were: 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%.
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Nokia Corporation operates as a mobile communications company worldwide. It operates in three segments: Devices & Services, HERE, and Nokia Siemens Networks. Nokia Oyj has a market cap of $12.66 billion and is part of the technology sector. Shares are down 15.4% year to date as of the close of trading on Friday. Currently there are four analysts that rate Nokia Oyj a buy, nine analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Nokia Oyj as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

On the positive front, 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%, were all gainers within the telecommunications industry with Qualcomm ( QCOM) 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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