Alcatel-Lucent (ALU): Today's Featured Telecommunications Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Alcatel-Lucent ( ALU) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 1.1%. By the end of trading, Alcatel-Lucent fell $0.05 (-2.0%) to $2.49 on average volume. Throughout the day, 20,540,126 shares of Alcatel-Lucent exchanged hands as compared to its average daily volume of 13,898,100 shares. The stock ranged in price between $2.43-$2.54 after having opened the day at $2.52 as compared to the previous trading day's close of $2.54. Other companies within the Telecommunications industry that declined today were: Iridium Communications ( IRDM), down 18.6%, Deltathree ( DDDC), down 15.5%, Cbeyond ( CBEY), down 14.4% and Alvarion ( ALVR), down 7.5%.

Alcatel-Lucent provides networking and communications technology, products, and services to service providers, enterprises, and governments worldwide. Alcatel-Lucent has a market cap of $5.7 billion and is part of the technology sector. Shares are up 82.7% year to date as of the close of trading on Wednesday. Currently there are 4 analysts that rate Alcatel-Lucent a buy, 2 analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Alcatel-Lucent as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk.

On the positive front, Voltari ( VLTC), up 14.0%, B Communications ( BCOM), up 13.5%, Clearfield ( CLFD), up 13.2% and Zoom Technologies ( ZOOM), up 12.6% , 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).

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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