AT&T Inc (T): 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.

AT&T ( T) 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, AT&T fell $0.45 (-1.3%) to $33.95 on average volume. Throughout the day, 27,036,299 shares of AT&T exchanged hands as compared to its average daily volume of 23,615,300 shares. The stock ranged in price between $33.92-$34.45 after having opened the day at $34.40 as compared to the previous trading day's close of $34.40. Other companies within the Telecommunications industry that declined today were: eOn Communications Corporation ( EONC), down 10.6%, NII Holdings ( NIHD), down 9.4%, DragonWave ( DRWI), down 7.2% and Zoom Technologies ( ZOOM), down 6.2%.

AT&T Inc. provides telecommunications services to consumers, businesses, and other providers in the United States and internationally. The company operates in three segments: Wireless, Wireline, and Other. AT&T has a market cap of $182.7 billion and is part of the technology sector. The company has a P/E ratio of 24.1, above the S&P 500 P/E ratio of 17.7. Shares are up 2.9% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate AT&T a buy, 1 analyst rates it a sell, and 20 rate it a hold.

TheStreet Ratings rates AT&T as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, ARC Group Worldwide ( ARCW), up 9.5%, xG Technology ( XGTI), up 3.0%, ShoreTel ( SHOR), up 2.7% and Linktone ( LTON), up 2.4%.

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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