MetroPCS Communications Inc (PCS): Today's Featured Telecommunications Winner

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

MetroPCS Communications ( PCS) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day down 0.4%. By the end of trading, MetroPCS Communications rose $8.73 (112.0%) to $16.52 on average volume. Throughout the day, 10,921,313 shares of MetroPCS Communications exchanged hands as compared to its average daily volume of 9,368,200 shares. The stock ranged in a price between $16.01-$16.99 after having opened the day at $16.37 as compared to the previous trading day's close of $7.79. Other companies within the Telecommunications industry that increased today were: Inteliquent ( IQNT), up 52.0%, Sonus Networks ( SONS), up 13.3%, ShoreTel ( SHOR), up 9.4% and DragonWave ( DRWI), up 7.7%.
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MetroPCS Communications, Inc., a wireless telecommunications carrier, together with its subsidiaries, provides wireless broadband mobile services in the United States. MetroPCS Communications has a market cap of $4.4 billion and is part of the technology sector. The company has a P/E ratio of 11.2, below the S&P 500 P/E ratio of 17.7. Shares are up 19.1% year to date as of the close of trading on Tuesday. Currently there are 5 analysts that rate MetroPCS Communications a buy, 2 analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates MetroPCS Communications as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, MERU Networks ( MERU), down 14.7%, WPCS International ( WPCS), down 14.3%, eOn Communications Corporation ( EONC), down 7.4% and JDS Uniphase Corp (CA ( JDSU), down 7.3% , were all laggards within the telecommunications industry with Verizon Communications ( VZ) 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).

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