CenturyLink Inc (CTL): Today's Featured Technology 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

CenturyLink ( CTL) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.2%. By the end of trading, CenturyLink fell $0.79 (-2.1%) to $37.10 on heavy volume. Throughout the day, 14,604,923 shares of CenturyLink exchanged hands as compared to its average daily volume of 7,865,900 shares. The stock ranged in price between $36.34-$37.73 after having opened the day at $37.70 as compared to the previous trading day's close of $37.89. Other companies within the Technology sector that declined today were: Vocus ( VOCS), down 37.1%, Wave Systems Corporation ( WAVX), down 27.3%, Superconductor Technologies ( SCON), down 26.2% and Voltari ( VLTC), down 24.6%.
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CenturyLink, Inc. operates as an integrated telecommunications company in the United States. CenturyLink has a market cap of $23.0 billion and is part of the telecommunications industry. The company has a P/E ratio of 24.6, above the S&P 500 P/E ratio of 17.7. Shares are down 3.1% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates CenturyLink as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk.

On the positive front, Cimatron ( CIMT), down 16.4%, Velti ( VELT), down 13.0%, China Information Technology ( CNIT), down 12.2% and First Solar ( FSLR), down 11.8% , were all gainers within the technology sector with TE Connectivity ( TEL) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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