Verizon Communications Inc (VZ): 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

Verizon Communications ( VZ) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day down 0.4%. By the end of trading, Verizon Communications fell $1.51 (-2.8%) to $52.40 on heavy volume. Throughout the day, 23,682,286 shares of Verizon Communications exchanged hands as compared to its average daily volume of 13,686,900 shares. The stock ranged in price between $52.09-$53.97 after having opened the day at $53.77 as compared to the previous trading day's close of $53.91. Other companies within the Telecommunications industry that declined today were: 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%.
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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 $158.6 billion and is part of the technology sector. The company has a P/E ratio of 133.7, above the S&P 500 P/E ratio of 17.7. Shares are up 24.6% year to date as of the close of trading on Tuesday. Currently there are 13 analysts that rate Verizon Communications a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Verizon Communications as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and solid stock price performance. 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 positive front, Inteliquent ( IQNT), down 52.0%, Sonus Networks ( SONS), down 13.3%, ShoreTel ( SHOR), down 9.4% and DragonWave ( DRWI), down 7.7% , were all gainers within the telecommunications industry with MetroPCS Communications ( PCS) 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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