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Sprint Nextel Corp (S): Today's Featured Telecommunications Winner

Tickers in this article: S

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Sprint Nextel ( S) pushed the Telecommunications industry higher today making it today's featured telecommunications winner. The industry as a whole was unchanged today. By the end of trading, Sprint Nextel rose $0.10 (1.4%) to $7.19 on heavy volume. Throughout the day, 86,537,812 shares of Sprint Nextel exchanged hands as compared to its average daily volume of 42,336,400 shares. The stock ranged in a price between $7.10-$7.21 after having opened the day at $7.12 as compared to the previous trading day's close of $7.09. Other companies within the Telecommunications industry that increased today were: Primus Telecommunications Group ( PTGI), up 24.6%, WPCS International ( WPCS), up 15.2%, B Communications ( BCOM), up 8.1% and Technical Communications ( TCCO), up 6.7%.

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Sprint Nextel Corporation, through its subsidiaries, offers a range of wireless and wireline communications products and services to individual consumers, businesses, government subscribers, and resellers in the United States, Puerto Rico, and the U.S. Virgin Islands. Sprint Nextel has a market cap of $21.7 billion and is part of the technology sector. Shares are up 25.0% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Sprint Nextel as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk.

On the negative front, Nokia Oyj ( NOK), down 11.4%, Zoom Technologies ( ZOOM), down 10.0%, iPass ( IPAS), down 9.0% and Wireless Telecom Group ( WTT), down 7.2% , were all laggards within the telecommunications industry with LM Ericsson Telephone Company ( ERIC) 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).

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