Telefonica Brasil S.A. (VIV): 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

Telefonica Brasil S.A ( VIV) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 8.7%. By the end of trading, Telefonica Brasil S.A fell $0.69 (-2.6%) to $26.25 on light volume. Throughout the day, 682,821 shares of Telefonica Brasil S.A exchanged hands as compared to its average daily volume of 1,151,800 shares. The stock ranged in price between $26.13-$26.78 after having opened the day at $26.68 as compared to the previous trading day's close of $26.94. Other companies within the Telecommunications industry that declined today were: Ikanos Communications ( IKAN), down 19.6%, Pointer Telocation ( PNTR), down 9.1%, NII Holdings ( NIHD), down 6.4% and Inteliquent ( IQNT), down 6.0%.
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Telefonica Brasil S.A. provides fixed-line telecommunications services to residential and commercial customers in Brazil. Telefonica Brasil S.A has a market cap of $29.8 billion and is part of the technology sector. The company has a P/E ratio of 6.5, below the S&P 500 P/E ratio of 17.7. Shares are up 12.0% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Telefonica Brasil S.A as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the positive front, Voltari ( VLTC), down 1623.7%, WPCS International ( WPCS), down 21.7%, Maxcom Telecomunicaciones S.A.B. de C.V ( MXT), down 8.6% and CalAmp Corporation ( CAMP), down 6.2% , were all gainers within the telecommunications industry with Research in Motion ( BBRY) 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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