Windstream Corp (WIN): Today's Featured Telecommunications Laggard

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

Windstream ( WIN) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Windstream fell $0.11 (-1.3%) to $8.53 on light volume. Throughout the day, 4,104,512 shares of Windstream exchanged hands as compared to its average daily volume of 8,252,500 shares. The stock ranged in price between $8.46-$8.63 after having opened the day at $8.61 as compared to the previous trading day's close of $8.64. Other companies within the Telecommunications industry that declined today were: Intelsat ( I), down 62.6%, Wireless Telecom Group ( WTT), down 8.5%, Zoom Technologies ( ZOOM), down 6.1% and Ambient Corporation ( AMBT), down 5.6%.
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Windstream Corporation provides communications and technology solutions in the United States. The company offers managed services and cloud computing services to businesses, as well as broadband, voice, and video services to consumers primarily in rural markets. Windstream has a market cap of $5.1 billion and is part of the technology sector. The company has a P/E ratio of 30.6, above the S&P 500 P/E ratio of 17.7. Shares are up 3.6% year to date as of the close of trading on Friday.

TheStreet Ratings rates Windstream as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.

On the positive front, Voltari ( VLTC), down 20.0%, eOn Communications Corporation ( EONC), down 9.5%, NTS ( NTS), down 7.7% and Zhone Technologies ( ZHNE), down 7.5% , 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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