BCE Inc (BCE): 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

BCE ( BCE) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole was unchanged today. By the end of trading, BCE fell $0.48 (-1.0%) to $47.07 on average volume. Throughout the day, 582,323 shares of BCE exchanged hands as compared to its average daily volume of 740,100 shares. The stock ranged in price between $46.90-$47.58 after having opened the day at $47.39 as compared to the previous trading day's close of $47.55. Other companies within the Telecommunications industry that declined today were: Wireless Telecom Group ( WTT), down 8.9%, Blonder Tongue Laboratories ( BDR), down 8.9%, MER Telemanagement Solutions ( MTSL), down 8.8% and Deltathree ( DDDC), down 6.7%.
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BCE Inc. provides communications solutions to residential, business, and wholesale customers primarily in Canada. BCE has a market cap of $36.9 billion and is part of the technology sector. The company has a P/E ratio of 13.9, below the S&P 500 P/E ratio of 17.7. Shares are up 10.7% year to date as of the close of trading on Tuesday. Currently there are 3 analysts that rate BCE a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates BCE as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, notable return on equity 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 positive front, Net Element International ( NETE), down 10.8%, Alaska Communications Systems Group ( ALSK), down 6.7%, Hong Kong Television Network ( HKTV), down 5.9% and NTS ( NTS), down 5.0% , were all gainers within the telecommunications industry with LM Ericsson Telephone Company ( ERIC) 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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