Verizon Communications Inc (VZ): 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

Verizon Communications ( VZ) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 2.3%. By the end of trading, Verizon Communications fell $1.09 (-2.2%) to $48.96 on average volume. Throughout the day, 14,555,931 shares of Verizon Communications exchanged hands as compared to its average daily volume of 12,747,200 shares. The stock ranged in price between $48.86-$49.86 after having opened the day at $49.69 as compared to the previous trading day's close of $50.05. Other companies within the Technology sector that declined today were: Ebix ( EBIX), down 44.2%, Daqo New Energy ( DQ), down 15.5%, Clearfield ( CLFD), down 13.0% and Sky-mobi ( MOBI), down 10.9%.
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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 $153.0 billion and is part of the telecommunications industry. The company has a P/E ratio of 128.9, above the S&P 500 P/E ratio of 17.7. Shares are up 15.7% 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 14 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 growth in earnings per share. 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, On Track Innovations ( OTIV), down 22.6%, Amtech Systems ( ASYS), down 12.0%, Finisar Corporation ( FNSR), down 8.8% and Advanced Photonix ( API), down 7.8%.

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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