Siemens AG (SI): 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

Siemens ( SI) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day down 0.9%. By the end of trading, Siemens fell $2.67 (-2.5%) to $105.10 on average volume. Throughout the day, 425,211 shares of Siemens exchanged hands as compared to its average daily volume of 371,900 shares. The stock ranged in price between $105.10-$107.06 after having opened the day at $106.69 as compared to the previous trading day's close of $107.77. Other companies within the Telecommunications industry that declined today were: WPCS International ( WPCS), down 7.5%, Nortel Inversora ( NTL), down 6.9%, Deltathree ( DDDC), down 6.8% and Telecom Italia SpA ( TI), down 5.8%.
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Siemens Aktiengesellschaft, an electronics and electrical engineering company, operates in the energy, healthcare, industry, and infrastructure and cities sectors worldwide. Siemens has a market cap of $90.5 billion and is part of the industrial goods sector. The company has a P/E ratio of 32.1, above the S&P 500 P/E ratio of 17.7. Shares are down 1.6% year to date as of the close of trading on Thursday. Currently there are 2 analysts that rate Siemens a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Siemens as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

On the positive front, ARC Group Worldwide ( ARCW), down 8.0%, Aware ( AWRE), down 7.5%, Hawaiian Telcom Holdco ( HCOM), down 4.3% and Clearfield ( CLFD), down 4.2% , were all gainers within the telecommunications industry with NII Holdings ( NIHD) 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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