Verizon Communications Inc (VZ): Today's Featured Technology 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

Verizon Communications ( VZ) pushed the Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day up 1.2%. By the end of trading, Verizon Communications rose $0.73 (1.5%) to $50.63 on light volume. Throughout the day, 6,527,239 shares of Verizon Communications exchanged hands as compared to its average daily volume of 13,036,900 shares. The stock ranged in a price between $49.80-$50.71 after having opened the day at $49.89 as compared to the previous trading day's close of $49.90. Other companies within the Technology sector that increased today were: Webmedia Brands ( WEBM), up 21.6%, Pixelworks ( PXLW), up 20.1%, Overland Storage ( OVRL), up 17.0% and LRAD ( LRAD), up 16.0%.
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Verizon Communications Inc., through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses, and governmental agencies worldwide. Verizon Communications has a market cap of $148.9 billion and is part of the telecommunications industry. The company has a P/E ratio of 125.5, above the S&P 500 P/E ratio of 17.7. Shares are up 15.3% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate Verizon Communications a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Verizon Communications as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and increase in stock price during the past year. 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 28.0%, Kingtone Wirelessinfo Solution ( KONE), down 15.1%, Marketo ( MKTO), down 13.2% and Phoenix New Media ( FENG), down 11.8% , were all laggards within the technology sector with Himax Technologies ( HIMX) being today's technology sector laggard.

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).

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