SK Telecom Co. Ltd. (SKM): Today's Featured Technology 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

SK Telecom ( SKM) pushed the Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day up 0.2%. By the end of trading, SK Telecom rose $0.78 (3.8%) to $21.50 on average volume. Throughout the day, 2,276,145 shares of SK Telecom exchanged hands as compared to its average daily volume of 1,674,800 shares. The stock ranged in a price between $21.49-$21.64 after having opened the day at $21.52 as compared to the previous trading day's close of $20.72. Other companies within the Technology sector that increased today were: Interactive Intelligence Group ( ININ), up 19.0%, ClearSign Combustion ( CLIR), up 16.5%, Responsys ( MKTG), up 12.8% and Sevcon ( SEV), up 11.7%.
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SK Telecom Co., Ltd. provides wireless telecommunications services principally in Korea. SK Telecom has a market cap of $13.3 billion and is part of the telecommunications industry. The company has a P/E ratio of 9.9, below the S&P 500 P/E ratio of 17.7. Shares are up 30.9% year to date as of the close of trading on Monday. Currently there are 2 analysts that rate SK Telecom a buy, 1 analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates SK Telecom as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Ruckus Wireless ( RKUS), down 26.2%, Aruba Networks ( ARUN), down 22.8%, Deltathree ( DDDC), down 18.0% and MERU Networks ( MERU), down 12.2% , were all laggards within the technology sector with Research in Motion ( BBRY) being today's technology sector laggard.

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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