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 1.0%. By the end of trading, LM Ericsson Telephone Company rose $0.21 (1.6%) to $13.03 on average volume. Throughout the day, 3,794,309 shares of LM Ericsson Telephone Company exchanged hands as compared to its average daily volume of 4,099,200 shares. The stock ranged in a price between $12.98-$13.08 after having opened the day at $12.99 as compared to the previous trading day's close of $12.82. Other companies within the Telecommunications industry that increased today were: eOn Communications Corporation ( EONC), up 13.4%, magicJack VocalTec ( CALL), up 8.9%, Clearfield ( CLFD), up 6.9% and WPCS International ( WPCS), up 6.4%.

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 $41.9 billion and is part of the technology sector. Shares are up 4.7% year to date as of the close of trading on Monday. Currently there are 5 analysts that rate LM Ericsson Telephone Company a buy, 2 analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates LM Ericsson Telephone Company as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Elephant Talk Communications ( ETAK), down 13.2%, Ambient Corporation ( AMBT), down 7.2%, Towerstream Corporation ( TWER), down 6.9% and Alteva ( ALTV), down 6.4% , were all laggards within the telecommunications industry with CalAmp Corporation ( CAMP) 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).

3x UPSIDE POTENTIAL: 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

Hewlett Packard Enterprise Becomes the Latest Tech Titan to Slash Jobs

Wolf Pack Descends on BroadSoft

AT&T Expanding 5G Network Trials to Test Faster Service

These Stocks Are Ready to Reverse Course

5 Questions to Answer Before Investing in a Stock