Alcatel-Lucent (ALU): 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.

Alcatel-Lucent ( ALU) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole closed the day up 0.3%. By the end of trading, Alcatel-Lucent rose $0.11 (2.7%) to $4.16 on light volume. Throughout the day, 7,549,595 shares of Alcatel-Lucent exchanged hands as compared to its average daily volume of 10,350,400 shares. The stock ranged in a price between $4.12-$4.19 after having opened the day at $4.17 as compared to the previous trading day's close of $4.05. Other companies within the Telecommunications industry that increased today were: Otelco ( OTEL), up 10.1%, Ambient Corporation ( AMBT), up 9.1%, Novatel Wireless ( NVTL), up 6.2% and Envivio ( ENVI), up 5.8%.

Alcatel-Lucent provides Internet protocol (IP) and cloud networking, and ultra-broadband fixed and wireless access to service providers and their customers, enterprises, and institutions worldwide. It operates through three segments: Core Networking, Access, and Other. Alcatel-Lucent has a market cap of $8.9 billion and is part of the technology sector. Shares are down 11.4% year to date as of the close of trading on Tuesday. Currently there are 3 analysts that rate Alcatel-Lucent a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Alcatel-Lucent 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 compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and generally higher debt management risk.

On the negative front, SK Telecom ( SKM), down 5.3%, GTT Communications ( GTT), down 4.7%, Sky-mobi ( MOBI), down 4.6% and Elephant Talk Communications ( ETAK), down 4.4% , were all laggards within the telecommunications industry with VeriSign ( VRSN) 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.

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