Verizon Communications Inc (VZ): Today's Key Contributor To Industry Gains

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.

Verizon Communications ( VZ) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day up 1.6%. By the end of trading, Verizon Communications rose 50 cents (1%) to $49.86 on light volume. Throughout the day, 7.5 million shares of Verizon Communications exchanged hands as compared to its average daily volume of 14.4 million shares. The stock ranged in a price between $49.30-$49.86 after having opened the day at $49.46 as compared to the previous trading day's close of $49.36. Other companies within the Telecommunications industry that increased today were: DragonWave ( DRWI), up 28.4%, Adtran ( ADTN), up 13.9%, NII Holdings ( NIHD), up 13.9%, and Net Element International ( NETE), up 11.2%.
  • 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.

Verizon Communications Inc., through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses, and governmental agencies worldwide. Verizon Communications has a market cap of $143.35 billion and is part of the technology sector. The company has a P/E ratio of 159.5, above the S&P 500 P/E ratio of 17.7. Shares are up 14.1% year to date as of the close of trading on Tuesday. Currently there are 14 analysts that rate Verizon Communications a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Verizon Communications as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

On the negative front, Telestone Technologies Corporation ( TSTC), down 14.4%, Dialogic ( DLGC), down 5.3%, NTS ( NTS), down 4.7%, and Zoom Technologies ( ZOOM), down 4.3%, were all laggards within the telecommunications industry with Research in Motion ( BBRY) 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.

If you liked this article you might like

Comcast Dodges Big Social, Moves Watchable In-House

T-Mobile-Sprint Merger's First Big Challenge: Who Will Control It?

A Sprint/T-Mobile Deal Still Faces Big Hurdles, Especially for Sprint

Wall Street Overlooks Trump's North Korea Threats to Hit New Records

Cramer: Under Trump, These Are Probably Done Deals