Qualcomm Inc. (QCOM): 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

Qualcomm ( QCOM) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day up 0.8%. By the end of trading, Qualcomm rose $0.97 (1.5%) to $66.61 on average volume. Throughout the day, 11,300,379 shares of Qualcomm exchanged hands as compared to its average daily volume of 12,237,300 shares. The stock ranged in a price between $65.57-$66.67 after having opened the day at $66.22 as compared to the previous trading day's close of $65.64. Other companies within the Telecommunications industry that increased today were: Viasat ( VSAT), up 19.3%, WPCS International ( WPCS), up 13.9%, DragonWave ( DRWI), up 10.8% and Zhone Technologies ( ZHNE), up 10.0%.
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QUALCOMM Incorporated designs, develops, manufactures, and markets digital telecommunications products and services. It operates in four segments: QCT, QTL, QWI, and QSI. Qualcomm has a market cap of $113.2 billion and is part of the technology sector. The company has a P/E ratio of 18.5, above the S&P 500 P/E ratio of 17.7. Shares are up 5.9% year to date as of the close of trading on Thursday. Currently there are 27 analysts that rate Qualcomm a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Qualcomm as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Alteva ( ALTV), down 23.3%, MERU Networks ( MERU), down 11.2%, Trunkbow International Holdings ( TBOW), down 6.2% and Glowpoint ( GLOW), down 6.1%.

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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