Ubiquiti Networks Inc (UBNT): 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.

Ubiquiti Networks ( UBNT) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 0.8%. By the end of trading, Ubiquiti Networks fell $0.57 (-1.2%) to $46.35 on average volume. Throughout the day, 1,362,024 shares of Ubiquiti Networks exchanged hands as compared to its average daily volume of 929,400 shares. The stock ranged in price between $46.24-$48.00 after having opened the day at $46.95 as compared to the previous trading day's close of $46.92. Other companies within the Telecommunications industry that declined today were: Cyan ( CYNI), down 29.8%, WPCS International ( WPCS), down 5.2%, Parametric Sound ( PAMT), down 4.8% and magicJack VocalTec ( CALL), down 4.7%.

Ubiquiti Networks, Inc., together with its subsidiaries, offers a portfolio of networking products and solutions for service providers and enterprises. Ubiquiti Networks has a market cap of $4.0 billion and is part of the technology sector. The company has a P/E ratio of 38.4, above the S&P 500 P/E ratio of 17.7. Shares are up 2.1% year to date as of the close of trading on Monday. Currently there are 7 analysts that rate Ubiquiti Networks a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Ubiquiti Networks as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

On the positive front, InfoSonics Corporation ( IFON), up 11.4%, Gogo ( GOGO), up 9.9%, Elephant Talk Communications ( ETAK), up 8.0% and EarthLink Holdings ( ELNK), up 7.7% , were all gainers within the telecommunications industry with Crown Castle International ( CCI) 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.

If you liked this article you might like

It's Buyer Beware on Ubiquiti Networks

This Company Could Be a Fraud, Noted Short-Seller Andrew Left Says

Stock Picking Is Getting Tough

Got an Email Marked 'Urgent' From the Boss? Think Twice Before Responding too Quickly

Chesapeake Energy, Priceline, Schlumberger, ZELTIQ : 'Mad Money' Lightning Round