Sprint Nextel Corp (S): 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

Sprint Nextel ( S) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Sprint Nextel fell $0.10 (-1.4%) to $7.22 on average volume. Throughout the day, 48,288,154 shares of Sprint Nextel exchanged hands as compared to its average daily volume of 58,636,800 shares. The stock ranged in price between $7.15-$7.34 after having opened the day at $7.33 as compared to the previous trading day's close of $7.32. Other companies within the Telecommunications industry that declined today were: eOn Communications Corporation ( EONC), down 10.6%, Sky-mobi ( MOBI), down 9.8%, Linktone ( LTON), down 7.3% and Elephant Talk Communications ( ETAK), down 6.8%.
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Sprint Nextel Corporation, through its subsidiaries, offers a range of wireless and wireline communications products and services to individual consumers, businesses, government subscribers, and resellers in the United States, Puerto Rico, and the U.S. Virgin Islands. Sprint Nextel has a market cap of $22.1 billion and is part of the technology sector. Shares are up 29.1% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate Sprint Nextel a buy, 3 analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Sprint Nextel as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk.

On the positive front, Internet Gold Golden Lines ( IGLD), down 15.4%, iPass ( IPAS), down 13.3%, B Communications ( BCOM), down 8.7% and InfoSonics Corporation ( IFON), down 7.3% , were all gainers within the telecommunications industry with Qualcomm ( QCOM) 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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