Telefonica Brasil S.A. (VIV): Today's Featured Telecommunications Winner

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.

Telefonica Brasil S.A ( VIV) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day up 1.2%. By the end of trading, Telefonica Brasil S.A rose $0.43 (2.2%) to $19.87 on average volume. Throughout the day, 1,679,263 shares of Telefonica Brasil S.A exchanged hands as compared to its average daily volume of 1,496,300 shares. The stock ranged in a price between $19.58-$20.03 after having opened the day at $19.58 as compared to the previous trading day's close of $19.44. Other companies within the Telecommunications industry that increased today were: On Track Innovations ( OTIV), up 12.2%, Mavenir Systems ( MVNR), up 11.1%, Vonage Holdings Corporation ( VG), up 10.7% and KVH Industries ( KVHI), up 10.6%.

Telefonica Brasil S.A. provides fixed-line telecommunications services to residential and commercial customers in Brazil. Telefonica Brasil S.A has a market cap of $22.2 billion and is part of the technology sector. The company has a P/E ratio of 6.5, below the S&P 500 P/E ratio of 17.7. Shares are up 1.1% year to date as of the close of trading on Monday. Currently there are 5 analysts that rate Telefonica Brasil S.A a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Telefonica Brasil S.A as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.

On the negative front, Aviat Networks ( AVNW), down 15.7%, NII Holdings ( NIHD), down 14.4%, InfoSonics Corporation ( IFON), down 10.6% and DragonWave ( DRWI), down 6.0%.

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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