CenturyLink Inc (CTL): Today's Featured Technology 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

CenturyLink ( CTL) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.9%. By the end of trading, CenturyLink fell $0.41 (-1.1%) to $35.22 on average volume. Throughout the day, 6,151,719 shares of CenturyLink exchanged hands as compared to its average daily volume of 5,467,500 shares. The stock ranged in price between $35.18-$35.85 after having opened the day at $35.73 as compared to the previous trading day's close of $35.63. Other companies within the Technology sector that declined today were: Kingtone Wirelessinfo Solution ( KONE), down 16.7%, Vimicro International Corporation ( VIMC), down 15.6%, Plug Power ( PLUG), down 14.1% and Alvarion ( ALVR), down 12.9%.
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CenturyLink, Inc. operates as an integrated telecommunications company in the United States. CenturyLink has a market cap of $22.6 billion and is part of the telecommunications industry. The company has a P/E ratio of 22.1, above the S&P 500 P/E ratio of 17.7. Shares are down 5.2% 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 positive front, Clearwire ( CLWR), down 29.3%, Digital Power Corporation ( DPW), down 16.8%, Renewable Energy Trade Board ( EBOD), down 15.9% and Identive Group ( INVE), down 13.9% , were all gainers within the technology sector with Baidu ( BIDU) being today's featured technology sector leader.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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