NeuStar Inc. (NSR): 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.

NeuStar ( NSR) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day up 0.8%. By the end of trading, NeuStar fell $0.90 (-3.0%) to $28.82 on average volume. Throughout the day, 1,152,622 shares of NeuStar exchanged hands as compared to its average daily volume of 1,269,400 shares. The stock ranged in price between $28.80-$29.75 after having opened the day at $29.72 as compared to the previous trading day's close of $29.72. Other companies within the Telecommunications industry that declined today were: Ambient Corporation ( AMBT), down 5.7%, Net Element ( NETE), down 5.5%, Towerstream Corporation ( TWER), down 4.4% and NII Holdings ( NIHD), down 4.0%.

NeuStar, Inc. provides technology and directory services to customers pursuant to various private commercial and government contracts worldwide. The company operates in three segments: Carrier Services, Enterprise Services, and Information Services. NeuStar has a market cap of $1.8 billion and is part of the technology sector. Shares are down 40.4% year to date as of the close of trading on Monday. Currently there is 1 analyst that rates NeuStar a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates NeuStar as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Calix ( CALX), up 8.2%, eOn Communications Corporation ( EONC), up 7.1%, Glowpoint ( GLOW), up 6.6% and Lumos Networks ( LMOS), up 6.6% , were all gainers within the telecommunications industry with Alcatel-Lucent ( ALU) 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).

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