Alcatel-Lucent (ALU): Today's Featured Telecommunications Laggard

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 lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day down 0.4%. By the end of trading, Alcatel-Lucent fell $0.13 (-3.5%) to $3.64 on average volume. Throughout the day, 11,996,965 shares of Alcatel-Lucent exchanged hands as compared to its average daily volume of 9,908,900 shares. The stock ranged in price between $3.63-$3.70 after having opened the day at $3.66 as compared to the previous trading day's close of $3.77. Other companies within the Telecommunications industry that declined today were: Pointer Telocation ( PNTR), down 9.1%, Sky-mobi ( MOBI), down 8.1%, Gogo ( GOGO), down 7.7% and WPCS International ( WPCS), down 7.5%.

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. The company operates in three segments: Core Networking, Access, and Other. Alcatel-Lucent has a market cap of $10.7 billion and is part of the technology sector. Shares are down 14.3% year to date as of the close of trading on Friday. 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 positive front, GTT Communications ( GTT), up 5.1%, ARC Group Worldwide ( ARCW), up 4.4%, A10 Networks ( ATEN), up 4.1% and Sierra Wireless ( SWIR), up 3.0% , were all gainers within the telecommunications industry with CenturyLink ( CTL) being today's featured telecommunications industry leader.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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