Level 3 Communications Inc (LVLT): 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.

Level 3 Communications ( LVLT) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day down 0.8%. By the end of trading, Level 3 Communications rose $3.14 (10.0%) to $34.55 on heavy volume. Throughout the day, 5,721,069 shares of Level 3 Communications exchanged hands as compared to its average daily volume of 1,334,900 shares. The stock ranged in a price between $32.59-$34.90 after having opened the day at $32.64 as compared to the previous trading day's close of $31.41. Other companies within the Telecommunications industry that increased today were: Ambient Corporation ( AMBT), up 10.1%, Sprint ( S), up 8.4%, T-Mobile US ( TMUS), up 5.4% and eOn Communications Corporation ( EONC), up 4.9%.

Level 3 Communications, Inc., together with its subsidiaries, operates as a facilities-based provider of a range of integrated communications services primarily in North America, Latin America, and Europe. Level 3 Communications has a market cap of $6.9 billion and is part of the technology sector. Shares are down 5.3% year to date as of the close of trading on Tuesday. Currently there are 5 analysts that rate Level 3 Communications a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Level 3 Communications as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

On the negative front, Net Element ( NETE), down 9.6%, Ikanos Communications ( IKAN), down 8.6%, Parametric Sound ( PAMT), down 6.6% and NII Holdings ( NIHD), down 6.6% , were all laggards within the telecommunications industry with America Movil S.A.B. de C.V ( AMX) 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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