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Verizon Communications Inc (VZ): Today's Featured Telecommunications Underperformer

Tickers in this article: VZ

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 .

Verizon Communications ( VZ) pushed the Telecommunications industry lower today making it today's featured Telecommunications laggard. The industry as a whole closed the day down 1.6%. By the end of trading, Verizon Communications fell 92 cents (-1.8%) to $49.54 on average volume. Throughout the day, 15.2 million shares of Verizon Communications exchanged hands as compared to its average daily volume of 14 million shares. The stock ranged in price between $49.49-$50.35 after having opened the day at $50.25 as compared to the previous trading day's close of $50.46. Other companies within the Telecommunications industry that declined today were: Zoom Technologies ( ZOOM), down 21.1%, Wireless Telecom Group ( WTT), down 13.5%, Premiere Global Services ( PGI), down 8.8%, and NTS ( NTS), down 8.6%.

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Verizon Communications Inc., through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses, and governmental agencies worldwide. Verizon Communications has a market cap of $146.86 billion and is part of the technology sector. The company has a P/E ratio of 163.4, above the S&P 500 P/E ratio of 17.7. Shares are up 16.6% year to date as of the close of trading on Tuesday. Currently there are 14 analysts that rate Verizon Communications a buy, no analysts rate it a sell, and 11 rate it a hold.

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

On the positive front, Voltari ( VLTC), up 23.9%, Elephant Talk Communications ( ETAK), up 11.2%, Parametric Sound ( PAMT), up 10%, and Ambient Corporation ( AMBT), up 6.5%, were all gainers within the telecommunications industry with Nokia Oyj ( NOK) 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).