CenturyLink Inc (CTL): 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

CenturyLink ( CTL) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day down 0.2%. By the end of trading, CenturyLink rose $0.40 (1.1%) to $37.42 on average volume. Throughout the day, 4,924,372 shares of CenturyLink exchanged hands as compared to its average daily volume of 5,507,600 shares. The stock ranged in a price between $36.66-$37.58 after having opened the day at $36.80 as compared to the previous trading day's close of $37.02. Other companies within the Telecommunications industry that increased today were: 8x8 ( EGHT), up 8.0%, iPass ( IPAS), up 7.8%, Westell Technologies ( WSTL), up 6.7% and DSP Group ( DSPG), up 6.4%.
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CenturyLink, Inc. operates as an integrated telecommunications company in the United States. CenturyLink has a market cap of $22.7 billion and is part of the technology sector. The company has a P/E ratio of 22.2, above the S&P 500 P/E ratio of 17.7. Shares are down 4.8% year to date as of the close of trading on Wednesday. Currently there are 9 analysts that rate CenturyLink a buy, 3 analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates CenturyLink as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels, expanding profit margins, impressive record of earnings per share growth and notable return on equity. 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 negative front, Deltathree ( DDDC), down 24.6%, WPCS International ( WPCS), down 14.3%, eOn Communications Corporation ( EONC), down 9.3% and Infinera Corporation ( INFN), down 7.7% , were all laggards within the telecommunications industry with Nokia Oyj ( NOK) being today's telecommunications industry laggard.

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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