Ubiquiti Networks Inc (UBNT): 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.

Ubiquiti Networks ( UBNT) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day up 1.0%. By the end of trading, Ubiquiti Networks rose $4.65 (10.2%) to $50.00 on heavy volume. Throughout the day, 4,725,730 shares of Ubiquiti Networks exchanged hands as compared to its average daily volume of 1,065,100 shares. The stock ranged in a price between $45.90-$50.30 after having opened the day at $46.30 as compared to the previous trading day's close of $45.35. Other companies within the Telecommunications industry that increased today were: eOn Communications Corporation ( EONC), up 17.6%, Alvarion ( ALVR), up 16.6%, Sierra Wireless ( SWIR), up 8.8% and Westell Technologies ( WSTL), up 7.3%.

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. Shares are down 1.3% year to date as of the close of trading on Friday. 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 compelling growth in net income. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

On the negative front, ARC Group Worldwide ( ARCW), down 8.3%, Oi ( OIBR), down 6.7%, Telefonica Brasil S.A ( VIV), down 5.3% and Nortel Inversora ( NTL), down 3.6% , were all laggards within the telecommunications industry with AT&T ( T) 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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