Qualcomm Inc. (QCOM): 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

Qualcomm ( QCOM) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day down 1.3%. By the end of trading, Qualcomm fell $0.78 (-1.3%) to $59.88 on average volume. Throughout the day, 17,636,864 shares of Qualcomm exchanged hands as compared to its average daily volume of 12,964,900 shares. The stock ranged in price between $59.46-$60.21 after having opened the day at $60.00 as compared to the previous trading day's close of $60.67. Other companies within the Telecommunications industry that declined today were: On Track Innovations ( OTIV), down 10.7%, InfoSonics Corporation ( IFON), down 8.5%, Clearfield ( CLFD), down 7.4% and NII Holdings ( NIHD), down 7.4%.
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QUALCOMM Incorporated designs, develops, manufactures, and markets digital telecommunications products and services. It operates in four segments: QCT, QTL, QWI, and QSI. Qualcomm has a market cap of $105.3 billion and is part of the technology sector. The company has a P/E ratio of 17.2, below the S&P 500 P/E ratio of 17.7. Shares are down 1.9% year to date as of the close of trading on Friday. Currently there are 26 analysts that rate Qualcomm a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Qualcomm as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Numerex ( NMRX), down 13.3%, Multiband Corporation ( MBND), down 12.1%, Oi ( OIBR), down 8.0% and Net Element International ( NETE), down 6.2%.

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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