LM Ericsson Telephone Company (ERIC): 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.

LM Ericsson Telephone Company ( ERIC) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day down 1.9%. By the end of trading, LM Ericsson Telephone Company fell $0.22 (-1.8%) to $12.04 on heavy volume. Throughout the day, 8,053,410 shares of LM Ericsson Telephone Company exchanged hands as compared to its average daily volume of 4,264,800 shares. The stock ranged in price between $11.98-$12.24 after having opened the day at $12.22 as compared to the previous trading day's close of $12.26. Other companies within the Telecommunications industry that declined today were: CalAmp ( CAMP), down 24.4%, ARC Group Worldwide ( ARCW), down 12.2%, InfoSonics ( IFON), down 10.2% and Zhone Technologies ( ZHNE), down 10.0%.

Ericsson provides telecommunications equipment and services to mobile and fixed network operators worldwide. It operates through four segments: Networks, Global Services, Support Solutions, and Modems. LM Ericsson Telephone Company has a market cap of $40.6 billion and is part of the technology sector. Shares are up 0.2% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate LM Ericsson Telephone Company a buy, 2 analysts rate it a sell, and 2 rate 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 positive front, Premiere Global Services ( PGI), up 7.7%, Clearfield ( CLFD), up 7.4%, NTT DoCoMo ( DCM), up 5.2% and Loral Space & Communications ( LORL), up 3.3% , were all gainers within the telecommunications industry with Tim ( TSU) 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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