LM Ericsson Telephone Company (ERIC): 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.

LM Ericsson Telephone Company ( ERIC) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day up 1.4%. By the end of trading, LM Ericsson Telephone Company rose $0.60 (5.0%) to $12.55 on heavy volume. Throughout the day, 11,193,045 shares of LM Ericsson Telephone Company exchanged hands as compared to its average daily volume of 3,603,700 shares. The stock ranged in a price between $12.23-$12.58 after having opened the day at $12.34 as compared to the previous trading day's close of $11.95. Other companies within the Telecommunications industry that increased today were: Infinera Corporation ( INFN), up 29.0%, xG Technology ( XGTI), up 17.0%, Internet Gold Golden Lines ( IGLD), up 11.3% and Westell Technologies ( WSTL), up 10.2%.

Ericsson provides telecommunications equipment and services to mobile and fixed network operators worldwide. It operates in four segments: Networks, Global Services, Support Solutions, and ST-Ericsson. LM Ericsson Telephone Company has a market cap of $39.7 billion and is part of the technology sector. The company has a P/E ratio of 15.8, below the S&P 500 P/E ratio of 17.7. Shares are down 1.8% year to date as of the close of trading on Wednesday. Currently there are 4 analysts that rate LM Ericsson Telephone Company a buy, 2 analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates LM Ericsson Telephone Company as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.

On the negative front, NeuStar ( NSR), down 19.8%, On Track Innovations ( OTIV), down 12.6%, InfoSonics Corporation ( IFON), down 6.8% and DSP Group ( DSPG), down 5.0% , were all laggards within the telecommunications industry with Harris Corporation ( HRS) being today's telecommunications industry laggard.

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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