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 ( TEF) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Telefonica fell $0.15 (-1.0%) to $14.71 on light volume. Throughout the day, 933,426 shares of Telefonica exchanged hands as compared to its average daily volume of 2,090,600 shares. The stock ranged in price between $14.65-$14.79 after having opened the day at $14.78 as compared to the previous trading day's close of $14.86. Other companies within the Telecommunications industry that declined today were: Deltathree ( DDDC), down 16.7%, Net Element International ( NETE), down 7.4%, DragonWave ( DRWI), down 6.0% and Oi ( OIBR), down 5.3%.
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Telefonica, S.A. provides fixed and mobile communication services primarily in Europe and Latin America. Telefonica has a market cap of $66.3 billion and is part of the technology sector. Shares are up 10.2% year to date as of the close of trading on Friday. Currently there are 2 analysts that rate Telefonica a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Telefonica as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and poor profit margins.

On the positive front, Inteliquent ( IQNT), down 12.6%, RELM Wireless Corporation ( RWC), down 7.0%, DSP Group ( DSPG), down 6.2% and Zhone Technologies ( ZHNE), down 5.3% , were all gainers within the telecommunications industry with Level 3 Communications ( LVLT) 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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