ProShares Ultra Communication Services (ARCA: LTL)

最新ニュース ProShares Ultra Communication Services (ARCA:LTL)

ProShares Ultra Telecommunications ProShares

Communication Services

Technology

Other

The Fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the Daily Target. The Index is constructed and maintained by S&P Dow Jones Indices LLC. The Index represents the communication services sector of the S&P 500 Index. The Index is one of eleven S&P Select Sector Indices each designed to measure the performance of a sector of the S&P 500. Sectors are assigned using the Global Industry Classification Standard, which classifies securities primarily based on revenues.

Meta Platforms Inc

Alphabet Inc-cl A

Alphabet Inc Class C

Charter Communications Inc.-a

Electronic Arts, Inc.

ProShares Ultra Communication Services

<p><strong>Alphabet Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), the parent company of Google, reported stellar third-quarter earnings that not only beat Wall Street&#8217;s expectations but also drove the combined market cap of the &#8220;Magnificent Seven&#8221; tech giants to <a href="https://www.benzinga.com/topic/magnificent-7">an unprecedented $16.8 trillion.</a></p>
<p>Alphabet's earnings per share came in at $2.12, a 37% increase over the same quarter last year, far exceeding the consensus estimate of $1.55, according to data from <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent103024&amp;t=be2bearmibe3na1">Benzinga Pro.</a></p>
<p>Revenue reached $88.27 billion, representing a 15% year-over-year rise and surpassing the $86.39 billion that analysts anticipated.</p>
<p>Google advertising business was a key factor leading to the rise in revenue, totaling $65.9 billion, up from $59.6 billion last year. </p>
<p>Read More: <strong><a href="https://www.benzinga.com/news/earnings/24/10/41611263/alphabet-q3-earnings-highlights-revenue-beat-eps-beat-google-cloud-up-35-momentum-across-the-compan">Alphabet Q3 Earnings Highlights: Revenue Beat, EPS Beat, Google Cloud Up 35%, &#8216;Momentum Across The Company Is Extraordinary&#8217;</a></strong></p>
<h3 class="wp-block-heading">Alphabet Stock Surge Adds Over $150 Billion To Market Cap</h3>
<p>As a result of these impressive numbers, Alphabet's shares rallied over 6% by mid-morning on Wednesday, marking its best trading session since April. </p>
<p>The stock price increase translated into a more than $150 billion rise in Alphabet&#8217;s market capitalization, which now stands at $2.239 trillion.</p>
<p>Alphabet's surge also gave a substantial lift to the combined valuation of the Magnificent Seven, pushing it to a record-high $16.8 trillion. </p>
<h3 class="wp-block-heading">Mixed Performance Among the Magnificent 7</h3>
<p>While Alphabet soared on the back of its strong quarterly report, other stocks within the Magnificent Seven showed mixed performance on Wednesday. <strong>Nvidia Corp.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) slid as investors grew cautious on semiconductor stocks following weaker-than-expected earnings from <strong>Advanced Micro Devices In</strong>c. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>).</p>
<p>The week remains pivotal for the Magnificent Seven, as several other tech giants are set to release their quarterly earnings. <strong>Microsoft Corp. </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) and <strong>Meta Platforms Inc. </strong>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) will report their results after the close on Wednesday, while <strong>Amazon.com Inc. </strong>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and <strong>Apple Inc. </strong>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) will follow suit on Thursday after the market close.</p>
<p>Looking at the group's recent performance, <strong>Tesla Inc. </strong>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) emerged as the strongest over the last five days, with its stock gaining 20.28% following a positive reaction to its recent earnings report.</p>
<p>Here's a breakdown of market caps, recent price changes and year-to-date returns for each company within the Magnificent Seven:</p>
<p><figure class="wp-block-table is-style-stripes"><br />
<table>
<tbody>
<tr>
<td><strong>Name</strong></td>
<td><strong>Market Cap</strong></td>
<td><strong>Price Chg (5 Days)</strong></td>
<td><strong>Total Return (YTD)</strong></td>
</tr>
<tr>
<td><strong>Apple Inc.</strong></td>
<td>$ 3,526.02</td>
<td>-1.67%</td>
<td>20.91%</td>
</tr>
<tr>
<td><strong>NVIDIA Corporation</strong></td>
<td>$ 3,416.76B</td>
<td>-3.00%</td>
<td>181.33%</td>
</tr>
<tr>
<td><strong>Microsoft Corporation</strong></td>
<td>$ 3,255.49B</td>
<td>2.43%</td>
<td>17.08%</td>
</tr>
<tr>
<td><strong>Alphabet Inc.</strong></td>
<td>$ 2,237.83B</td>
<td>9.48%</td>
<td>29.92%</td>
</tr>
<tr>
<td><strong>Amazon.com, Inc.</strong></td>
<td>$ 2,035.74B</td>
<td>2.25%</td>
<td>27.66%</td>
</tr>
<tr>
<td><strong>Meta Platforms, Inc.</strong></td>
<td>$ 1,507.24B</td>
<td>2.37%</td>
<td>68.83%</td>
</tr>
<tr>
<td><strong>Tesla, Inc.</strong></td>
<td>$ 841.61B</td>
<td>20.28%</td>
<td>5.51%</td>
</tr>
</tbody>
</table>
<p></p></figure></p>
<h3 class="wp-block-heading">10 ETFs Moving On Alphabet Rally </h3>
<p>Alphabet's post-earnings rally has boosted several exchange-traded funds with significant exposure to the stock.</p>
<p><figure class="wp-block-table is-style-stripes"><br />
<table>
<thead>
<tr>
<th>ETF Name</th>
<th>Weight %</th>
<th>1-day %chg</th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>Direxion Daily GOOGL Bull 2X Shares</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GGLL#NYSE">GGLL</a>)</td>
<td>18.49%</td>
<td>+10.7%</td>
</tr>
<tr>
<td><strong>iShares Global Communication Services ETF</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>)</td>
<td>12.61%</td>
<td>+1.8%</td>
</tr>
<tr>
<td><strong>Fidelity MSCI Communication Services Index ETF</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCOM#NYSE">FCOM</a>)</td>
<td>12.40%</td>
<td>+1.8%</td>
</tr>
<tr>
<td><strong>Vanguard Communication Services ETF</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>)</td>
<td>11.87%</td>
<td>+1.9%</td>
</tr>
<tr>
<td><strong>Direxion Daily Magnificent 7 Bull 2X Shares</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QQQU#NYSE">QQQU</a>)</td>
<td>10.73%</td>
<td>+2.5%</td>
</tr>
<tr>
<td><strong>The Communication Services Select Sector SPDR Fund</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)</td>
<td>10.70%</td>
<td>+1.5%</td>
</tr>
<tr>
<td><strong>Kurv Technology Titans Select ETF</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KQQQ#NYSE">KQQQ</a>)</td>
<td>8.96%</td>
<td>+1.1%</td>
</tr>
<tr>
<td><strong>NYLI U.S. Large Cap Core ETF</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LRND#NYSE">LRND</a>)</td>
<td>8.53%</td>
<td>+0.6%</td>
</tr>
<tr>
<td><strong>Invesco AI and Next Gen Software ETF</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGPT#NYSE">IGPT</a>)</td>
<td>8.12%</td>
<td>-0.8%</td>
</tr>
<tr>
<td><strong>ProShares Ultra Communication Services</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LTL#NYSE">LTL</a>)</td>
<td>7.99%</td>
<td>+3.5%</td>
</tr>
</tbody>
</table>
<p></p></figure></p>
<p><strong>Read Next: </strong></p>
<ul>
<li><strong><a href="https://www.benzinga.com/general/biotech/24/10/41622207/eli-lilly-q3-earnings-mounjaro-sales-more-than-double-takes-2-98-billion-hit-to-profit-cuts-annua">Eli Lilly Q3 Earnings: Mounjaro Sales More Than Double, Takes $2.98 Billion Hit To Profit, Cuts Annual Outlook, Stock Tanks</a></strong></li>
</ul>
<p><em>Photo via Shutterstock. </em></p>


Equities

Large Cap

Sector ETFs

Broad U.S. Equity ETFs

Markets

Movers

Tech

ETFs

AAPL

AMZN

FCOM

GGLL

GOOG

GOOGL

IGPT

iShares Trust S&P Global Telecommunications Sector Index Fund

KQQQ

IndexIQ ETF Trust IQ U.S. Large Cap R&D Leaders ETF

LRND

MSFT

NVDA

Direxion Shares ETF Trust Direxion Daily Concentrated Qs Bull 2X Shares

QQQU

TSLA

Alphabet's Earnings Rally Pushes Magnificent 7 Market Cap To Record $16.8 Trillion: 10 Tech-Heavy ETFs Moving Wednesday

<p>Florida is implementing new measures to keep children and teenagers <a href="https://www.benzinga.com/topic/social-media">away from social media</a>.</p>
<p><strong>What Happened</strong>: Florida Gov. <strong>Ron DeSantis</strong> signed a bill Monday that bans the use of social media platforms for children 13 or under. The legislation also requires parental permission for those that are between the ages of 14 and 15.</p>
<p>The bill passed the Florida legislature earlier this month with bipartisan support.</p>
<p>For social media giants like <strong>Meta Platforms Inc</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), parent company of <strong>Instagram</strong> and <strong>Facebook</strong>, as well as Beijing-based TikTok owner <strong>Bytedance</strong>, it&#8217;s bad news.</p>
<p>Bytedance is already facing massive scrutiny from the federal government under a bill that could <a href="https://www.benzinga.com/markets/asia/24/03/37800098/tiktok-ban-china-has-the-power-to-block-sale-gains-leverage-over-washington">force the company to sell its U.S. operations to a local buyer or face a complete shutdown</a> in the country.</p>
<p>The main argument behind the newly-signed bill is backed by <a href="https://www.benzinga.com/news/23/03/31334429/mark-zuckerberg-under-fire-as-allegations-of-ignoring-social-media-addiction-among-adolescents-surfa">rising levels of anxiety, depression and addiction</a> to social media amongst teenagers, which many commentators have blamed a lack of action by the platforms themselves, and purposely addictive design.</p>
<p><em>Also Read: </em><a href="https://www.benzinga.com/general/entertainment/24/03/37543179/tiktoks-licensing-predicament-expiring-music-publishers-deal-amplifies-universal-music-grou?_gl=1&#x2A;jsptz3&#x2A;_ga&#x2A;NDQyMjI0OTU5LjE2Nzc1OTk3MDg.&#x2A;_ga_V7ZK73W7N0&#x2A;MTcxMTM4NDE2OS4yNDIuMS4xNzExMzkxMjUwLjAuMC4w"><em>TikTok&#8217;s Licensing Predicament: Expiring Music Publishers Deal Amplifies Universal Music Group Dispute</em></a></p>
<p>The bill did not clarify which companies will be affected by its language. But, it's expected that<strong> Snap Inc </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNAP#NYSE">SNAP</a>) and <strong>X</strong>, formerly Twitter, will also be amongst those affected. </p>
<p>The law would go live on Jan. 1, 2025, unless it's stopped by the courts in a likely challenge from social media lobby groups.</p>
<p>If enacted, the bill would automatically delete all accounts of children below the age of 14. For the platforms to fall under the legislation criteria, they must tick the boxes of having "addictive features." </p>
<p>This includes infinite scrolling and push alerts, as well as having a user base of at least 10% under the age of 16 spending at least two hours per day on the platform, <a href="https://www.miamiherald.com/news/politics-government/state-politics/article287064320.html">reported</a> The Miami Herald.</p>
<p>"A child in their brain development doesn't have the ability to know that they're being sucked into these addictive technologies and to see the harm and step away from it," said Republican Speaker <strong>Paul Renner</strong>, who spearheaded the bill, during the signing ceremony on Monday at a Jacksonville school.</p>
<p>The bill came to be after DeSantis vetoed a less washed-down version earlier this month, which aimed to ban all social media use for children under the age of 16.</p>
<p><strong>Why It Matters</strong>: Critics of the bill note its farther-reaching consequences. </p>
<p>To be able to impose age restrictions, Floridians will have to essentially hold an "I.D. for the Internet.&#8221; This forces residents of every age to face identity checks before using any website that the government deems inappropriate.</p>
<p>A court challenge for the bill is widely expected to come from <strong>NetChoice</strong>, a lobby group composed of Big Tech companies including Meta, TikTok, X (formerly known as Twitter), <strong>Amazon.com Inc</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>),<strong> eBay Inc</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EBAY#NASDAQ">EBAY</a>), <strong>LYFT Inc</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LYFT#NASDAQ">LYFT</a>),<strong> PayPal Holdings Inc</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>) and others.</p>
<p>The group is already locked in battle in a high-profile case in the Supreme Court, which is <a href="https://www.benzinga.com/markets/equities/24/02/37353082/the-supreme-court-is-weighing-whether-the-first-amendment-should-apply-to-meta-youtube-other-soc">trying to decide whether social media companies should be treated like newspapers or like telecoms companies</a>, ultimately affecting how First Amendment free-speech laws are applied to them.</p>
<p>In a public statement, NetChoice Vice President<strong> Carl Szabo</strong> called the Florida law "unconstitutional" and said it will protect "exactly zero Floridians."</p>
<p>In Szabo's opinion, HB 3 is a bad policy "because of the data collection on Floridians by online services it will in effect require."</p>
<p>While the group is defending the business interest of social media and other Big Tech companies, Szabo's sentiment echoes those who oppose government intervention in online services and would rather see a more free, less-controlled version of the internet.</p>
<p>"HB 3 forces Floridians to hand over sensitive personal information to websites or lose their access to critical information channels. This infringes on Floridians' First Amendment rights to share and access speech online," he said.</p>
<p>It&#8217;s not just Florida </p>
<p><a href="https://www.benzinga.com/government/23/04/31808170/tiktok-ban-or-not-kids-in-several-states-wont-be-able-to-use-social-media-without-parental-permissio">Several other states</a>, including Utah and Arkansas have also passed similar legislation. This could negatively affect social media companies and funds investing in them.</p>
<p><strong>Global X Social Media ETF</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOCL#NASDAQ">SOCL</a>) is the largest pure-play social media ETF, but other tech ETFs are heavy on social media companies, and include<strong> ​​Communication Services Select Sector SPDR Fund</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>), <strong>Fidelity MSCI Communication Services Index ETF</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FENY#NYSE">FENY</a>) and <strong>ProShares Ultra Communication Services</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LTL#NYSE">LTL</a>).</p>
<p><em>Now read: </em><a href="https://www.benzinga.com/news/24/03/37908129/facebook-isnt-lame-for-musk-anymore-tesla-rejoins-zuckerbergs-social-media-platform-after-ghosting-i"><em>Facebook Isn&#8217;t Lame For Musk Anymore? Tesla Rejoins Zuckerberg&#8217;s Social Media Platform After Ghosting It For 6 Years</em></a></p>
<p><em>Shutterstock picture.</em></p>


News

Social Media

General

EBAY

FENY

LYFT

PYPL

SNAP

SOCL

New Florida Law To Ban Social Media For Kids Under 14, Require ID Checks On All Ages—What's At Stake For Meta, Snap And Tech ETFs

<div class="entry-content">
<p>
		The Telecom sector ranks eighth out of the ten sectors as detailed in my <a href="http://blog.newconstructs.com/2012/10/08/sector-rankings-for-etfs-mutual-funds/">Sector Rankings for ETFs and Mutual Funds</a>. It gets my Dangerous rating, which is based on aggregation of ratings of 4 ETFs and 13 mutual funds in the Telecom sector as of October 11, 2012. Prior reports on the best &amp; worst ETFs and mutual funds in every sector and style are <a href="http://www.newconstructs.com/nc/research/report/etf-and-fund-reports.htm">here</a>.</p>
<p>
		Figure 1 ranks from best to worst the four Telecom Services ETFs and Figure 2 ranks from best to worst the nine Telecom Services mutual funds that meet our liquidity standards. Not all Telecom sector ETFs and mutual funds are created the same. The number of holdings varies widely (from 23 to 54), which creates drastically different investment implications and ratings. The best ETFs and mutual funds allocate more value to Attractive-or-better-rated stocks than the worst ETFs and mutual funds, which allocate too much value to Neutral-or-worse-rated stocks.</p>
<p>
		To <a href="http://blog.newconstructs.com/2012/10/09/how-to-find-the-best-etfs-2/">identify the best</a> and <a href="http://blog.newconstructs.com/2012/04/05/how-to-avoid-the-worst-etfs/">avoid the worst</a> ETFs and mutual funds within the Telecom sector, investors need a <a href="http://blog.newconstructs.com/2011/11/23/predictive-fund-rating-methodology/">predictive rating</a> based on (1) <a href="http://blog.newconstructs.com/2011/11/22/portfolio-management-rating-methodology/">stocks ratings</a> of the holdings and (2) the <a href="http://blog.newconstructs.com/2011/10/28/total-annual-costs-methodology/">all-in expenses</a> of each ETF and mutual fund. Investors need not rely on backward-looking ratings. My fund rating methodology is detailed <a href="http://blog.newconstructs.com/2011/11/23/predictive-fund-rating-methodology/">here</a>.</p>
<p>
		Investors should not buy any Telecom ETFs or mutual funds because none get an Attractive-or-better rating. If you must have exposure to this sector, you should buy a basket of Attractive-or-better rated stocks and avoid paying undeserved fund fees. Active management has a long <a href="http://blog.newconstructs.com/wp-content/uploads/2012/02/Failure-of-Active-Management1.pdf">history</a> of not paying off.</p>
<p>
		Get my ratings on all ETFs and mutual funds in this sector on my free <a href="http://www.newconstructs.com/nc/fundscreener/fund-screener.htm">mutual fund and ETF screener</a>.</p>
<div>
<p>
			<strong>Figure 1: ETFs with the Best &amp; Worst Ratings &ndash; Top 2</strong></p>
</div>
<p>
		<a href="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig1.jpg"><img alt="" class="aligncenter size-full wp-image-4735" height="167" src="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig1.jpg" title="TelecomFig1" width="329" /></a>* Best ETFs exclude ETFs with TNA&rsquo;s less than 100 million for inadequate liquidity.</p>
<div>
<p>
			Sources: New Constructs, LLC and company filings</p>
</div>
<p>
		SPDR S&amp;P Telecom ETF (NYSE: <a class="ticker" href="/stock/xtl#NYSE">XTL</a>) and ProShares Ultra Telecommunications ProShares (NYSE: <a class="ticker" href="/stock/ltl#NYSE">LTL</a>) have total net assets (TNA) below $100 million and do not meet our liquidity standards but are included because there are only 4 Telecom ETFs.</p>
<div>
<p>
			<strong>Figure 2: Mutual Funds with the Best &amp; Worst Ratings</strong></p>
</div>
<p>
		<a href="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig2.jpg"><img alt="" class="aligncenter size-full wp-image-4734" height="225" src="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig2.jpg" title="TelecomFig2" width="333" /></a></p>
<p>
		* Best mutual funds exclude funds with TNA&rsquo;s less than 100 million for inadequate liquidity.</p>
<div>
<p>
			Sources: New Constructs, LLC and company filings</p>
</div>
<p>
		<a href="http://bit.ly/STkkSu">Four funds</a> are excluded from Figure 2 because their total net assets (TNA) are below $100 million and do not meet our liquidity standards.</p>
<p>
		All Telecom ETFs are rated Dangerous, but Vanguard Telecom ETF (NYSE: <a class="ticker" href="/stock/vox#NYSE">VOX</a>) is the best of the Dangerous-rated Telecom ETF. T. Rowe Price Media &amp; Telecommunications Fund, Inc. (NYSE: <a class="ticker" href="/stock/prmtx#NYSE">PRMTX</a>) is my top-rated Telecom mutual fund. VOX earns my Dangerous rating, while PRMTX earns my Neutral rating.</p>
<p>
		iShares Dow Jones U.S. Telecommunications Index Fund (NYSE: <a class="ticker" href="/stock/iyz#NYSE">IYZ</a>) is my worst-rated Telecom ETF and Fidelity Select Portfolios: Fidelity Advisor Telecommunications Fund (NYSE: FTUAX) is my worst-rated Telecom mutual fund. IYZ earns my Dangerous rating and FTUAX earns my Very Dangerous rating.</p>
<p>
		Figure 3 shows that 25 out of the 99 stocks (over 20% of the total net assets) held by Telecom ETFs and mutual funds get an Attractive-or-better rating. However, there are not any Attractive-or-better-rated Telecom ETFs or mutual funds.</p>
<p>
		The takeaway is: mutual fund managers allocate too much capital to low-quality stocks and Telecom ETFs hold poor quality stocks.</p>
<div>
<p>
			<strong>Figure 3: Telecom Sector Landscape For ETFs, Mutual Funds &amp; Stocks</strong></p>
</div>
<div>
<p>
			<a href="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig3.jpg"><img alt="" class="aligncenter size-full wp-image-4733" height="156" src="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig3.jpg" title="TelecomFig3" width="405" /></a></p>
<p>
			Sources: New Constructs, LLC and company filings</p>
</div>
<p>
		As detailed in &ldquo;<a href="http://blog.newconstructs.com/2012/07/20/low-cost-funds-dupe-investors-2/">Cheap Funds Dupe Investors</a>&rdquo;, the fund industry offers many cheap funds but very few funds with high-quality stocks, or with what I call good <a href="http://blog.newconstructs.com/2011/11/22/portfolio-management-rating-methodology/">portfolio management</a>.</p>
<p>
		I recommend that Investors avoid all Telecom ETFs and mutual funds because none of the funds earn an Attractive-or-better rating. If investors still require exposure to the Telecom sector, they should instead focus on owning a basket of Attractive-or-better-rated stocks.</p>
<p>
		Vonage Holdings (NYSE: <a class="ticker" href="/stock/vg#NYSE">VG</a>) is one of my favorite stocks held by Telecom ETFs and mutual funds and earns my Very Attractive rating. Vonage is one of only two Very Attractive Telecom stocks and it&rsquo;s one of my favorite types of companies. Companies like Vonage leverage technology to provide services more efficiently. Not only does Vonage lower the costs of communication for consumers, they do so in a profitable and efficient manner by avoiding the capital intensity of the legacy networks. Vonage&rsquo;s <a href="http://www.newconstructs.com/nc/help/glossary.htm#roicDef">return on invested capital</a> is the best in the Telecom sector by a wide margin. At 167.2%, VG&rsquo;s ROIC is amongst the elite value-creating companies. They have been able to achieve this impressive figure by managing their working capital to maximize cash flows. Vonage&rsquo;s 2011 <a href="http://www.newconstructs.com/nc/help/glossary.htm#nopat">NOPAT</a> was nearly double its 2009 level. Growing cash flows and surging ROIC indicate that Vonage&rsquo;s management is disciplined about maximizing shareholder value. The stock is also available at a bargain. The current valuation implies that Vonage&rsquo;s profits will permanently decline by 62%. Those low expectations make a profitable company like Vonage an attractive buy.</p>
<p>
		Leap Wireless International (NASDAQ: <a class="ticker" href="/stock/leap#NASDAQ">LEAP</a>) is one of my least favorite stocks held by Telecom ETFs and mutual funds and earns my Very Dangerous rating. LEAP is a consistent value-destroyer and should be avoided by investors who demand a return that is sufficient to compensate them for the use of their capital. LEAP has never earned a ROIC greater than its <a href="http://www.newconstructs.com/nc/help/glossary.htm#helpWacc">WACC</a>. While it&rsquo;s true that LEAP&rsquo;s NOPAT has slowly grown from 2005&rsquo;s level of $33.07 million to $116.51 million in 2011, that profit growth has come at a significant cost. LEAPs&rsquo; <a href="http://www.newconstructs.com/nc/help/glossary.htm#investedCapital">invested capital</a> has grown rapidly as well and their ROIC has never been higher than 3%. Returns that low will likely never generate value for shareholders.</p>
<p>
		41 stocks of the 3000+ I cover are classified as Telecom stocks, but due to style drift, Telecom ETFs and mutual funds hold 99 stocks.</p>
<p>
		Figures 4 and 5 show the rating landscape of all Telecom ETFs and mutual funds.</p>
<p>
		Our <a href="http://blog.newconstructs.com/2012/10/08/sector-rankings-for-etfs-mutual-funds/">Sector Rankings for ETFs and Mutual Funds</a> report ranks all sectors and highlights those that offer the best investments.</p>
<div>
<p>
			<strong>Figure 4: Separating the Best ETFs From the Worst ETFs</strong></p>
</div>
<div>
<p>
			<a href="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig4.jpg"><img alt="" class="aligncenter size-full wp-image-4732" height="245" src="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig4.jpg" title="TelecomFig4" width="409" /></a></p>
<p>
			Sources: New Constructs, LLC and company filings</p>
</div>
<div>
<p>
			<strong>Figure 5: Separating the Best Mutual Funds From the Worst Mutual Funds</strong></p>
</div>
<div>
<p>
			<a href="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig5.jpg"><img alt="" class="aligncenter size-full wp-image-4731" height="245" src="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig5.jpg" title="TelecomFig5" width="409" /></a></p>
<p>
			Sources: New Constructs, LLC and company filings</p>
</div>
<p>
		Review my <a href="http://www.newconstructs.com/nc/fundscreener/fund-screener.htm?task=ACTION_CATEGORY_TYPE_SEARCH&amp;selectedTypes=0,1&amp;selectedCategoryIds=5d8c7cc0114e11e1a96300188b533b34">full list</a> of ratings and rankings along with reports on all 4 ETFs and 13 mutual funds in the Telecom sector.</p>
<p>
		<em>D</em><em>isclosure: I own VG. I receive no compensation to write about any specific stock, sector or&nbsp;theme.</em></p>
</div>


Specialty ETFs

iShares Dow Jones US Telecommunications Sector Index Fund

LEAP

PRMTX

Best & Worst ETFs & Mutual Funds: Telecom Sector

<div class="entry-content">
<p>
		The Telecom sector ranks eighth out of the ten sectors as detailed in my <a href="http://blog.newconstructs.com/2012/10/08/sector-rankings-for-etfs-mutual-funds/">Sector Rankings for ETFs and Mutual Funds</a>. It gets my Dangerous rating, which is based on aggregation of ratings of 4 ETFs and 13 mutual funds in the Telecom sector as of October 11, 2012. Prior reports on the best &amp; worst ETFs and mutual funds in every sector and style are <a href="http://www.newconstructs.com/nc/research/report/etf-and-fund-reports.htm">here</a>.</p>
<p>
		Figure 1 ranks from best to worst the four Telecom Services ETFs and Figure 2 ranks from best to worst the nine Telecom Services mutual funds that meet our liquidity standards. Not all Telecom sector ETFs and mutual funds are created the same. The number of holdings varies widely (from 23 to 54), which creates drastically different investment implications and ratings. The best ETFs and mutual funds allocate more value to Attractive-or-better-rated stocks than the worst ETFs and mutual funds, which allocate too much value to Neutral-or-worse-rated stocks.</p>
<p>
		To <a href="http://blog.newconstructs.com/2012/10/09/how-to-find-the-best-etfs-2/">identify the best</a> and <a href="http://blog.newconstructs.com/2012/04/05/how-to-avoid-the-worst-etfs/">avoid the worst</a> ETFs and mutual funds within the Telecom sector, investors need a <a href="http://blog.newconstructs.com/2011/11/23/predictive-fund-rating-methodology/">predictive rating</a> based on (1) <a href="http://blog.newconstructs.com/2011/11/22/portfolio-management-rating-methodology/">stocks ratings</a> of the holdings and (2) the <a href="http://blog.newconstructs.com/2011/10/28/total-annual-costs-methodology/">all-in expenses</a> of each ETF and mutual fund. Investors need not rely on backward-looking ratings. My fund rating methodology is detailed <a href="http://blog.newconstructs.com/2011/11/23/predictive-fund-rating-methodology/">here</a>.</p>
<p>
		Investors should not buy any Telecom ETFs or mutual funds because none get an Attractive-or-better rating. If you must have exposure to this sector, you should buy a basket of Attractive-or-better rated stocks and avoid paying undeserved fund fees. Active management has a long <a href="http://blog.newconstructs.com/wp-content/uploads/2012/02/Failure-of-Active-Management1.pdf">history</a> of not paying off.</p>
<p>
		Get my ratings on all ETFs and mutual funds in this sector on my free <a href="http://www.newconstructs.com/nc/fundscreener/fund-screener.htm">mutual fund and ETF screener</a>.</p>
<div>
<p>
			<strong>Figure 1: ETFs with the Best &amp; Worst Ratings &ndash; Top 2</strong></p>
</div>
<p>
		<a href="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig1.jpg"><img alt="" class="aligncenter size-full wp-image-4735" height="167" src="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig1.jpg" title="TelecomFig1" width="329" /></a></p>
<p>
		* Best ETFs exclude ETFs with TNA&rsquo;s less than $100 million for inadequate liquidity.</p>
<div>
<p>
			Sources: New Constructs, LLC and company filings</p>
</div>
<p>
		SPDR S&amp;P Telecom ETF (NYSE: <a class="ticker" href="/stock/xtl#NYSE">XTL</a>) and ProShares Ultra Telecommunications ProShares (NYSE: <a class="ticker" href="/stock/ltl#NYSE">LTL</a>) have total net assets (TNA) below $100 million and do not meet our liquidity standards but are included because there are only 4 Telecom ETFs.</p>
<div>
<p>
			<strong>Figure 2: Mutual Funds with the Best &amp; Worst Ratings</strong></p>
</div>
<p>
		<a href="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig2.jpg"><img alt="" class="aligncenter size-full wp-image-4734" height="225" src="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig2.jpg" title="TelecomFig2" width="333" /></a></p>
<p>
		* Best mutual funds exclude funds with TNA&rsquo;s less than $100 million for inadequate liquidity.</p>
<div>
<p>
			Sources: New Constructs, LLC and company filings</p>
</div>
<p>
		<a href="http://bit.ly/STkkSu">Four funds</a> are excluded from Figure 2 because their total net assets (TNA) are below $100 million and do not meet our liquidity standards.</p>
<p>
		All Telecom ETFs are rated Dangerous, but Vanguard Telecom ETF (NYSE: <a class="ticker" href="/stock/vox#NYSE">VOX</a>) is the best of the Dangerous-rated Telecom ETF. T. Rowe Price Media &amp; Telecommunications Fund, Inc. (NYSE: <a class="ticker" href="/stock/prmtx#NYSE">PRMTX</a>) is my top-rated Telecom mutual fund. VOX earns my Dangerous rating, while PRMTX earns my Neutral rating.</p>
<p>
		iShares Dow Jones U.S. Telecommunications Index Fund (NYSE: <a class="ticker" href="/stock/iyz#NYSE">IYZ</a>) is my worst-rated Telecom ETF and Fidelity Select Portfolios: Fidelity Advisor Telecommunications Fund (NYSE: FTUAX) is my worst-rated Telecom mutual fund. IYZ earns my Dangerous rating and FTUAX earns my Very Dangerous rating.</p>
<p>
		Figure 3 shows that 25 out of the 99 stocks (over 20% of the total net assets) held by Telecom ETFs and mutual funds get an Attractive-or-better rating. However, there are not any Attractive-or-better-rated Telecom ETFs or mutual funds.</p>
<p>
		The takeaway is: mutual fund managers allocate too much capital to low-quality stocks and Telecom ETFs hold poor quality stocks.</p>
<div>
<p>
			<strong>Figure 3: Telecom Sector Landscape For ETFs, Mutual Funds &amp; Stocks</strong></p>
</div>
<div>
<p>
			<a href="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig3.jpg"><img alt="" class="aligncenter size-full wp-image-4733" height="156" src="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig3.jpg" title="TelecomFig3" width="405" /></a></p>
<p>
			Sources: New Constructs, LLC and company filings</p>
</div>
<p>
		As detailed in &ldquo;<a href="http://blog.newconstructs.com/2012/07/20/low-cost-funds-dupe-investors-2/">Cheap Funds Dupe Investors</a>&rdquo;, the fund industry offers many cheap funds but very few funds with high-quality stocks, or with what I call good <a href="http://blog.newconstructs.com/2011/11/22/portfolio-management-rating-methodology/">portfolio management</a>.</p>
<p>
		I recommend that Investors avoid all Telecom ETFs and mutual funds because none of the funds earn an Attractive-or-better rating. If investors still require exposure to the Telecom sector, they should instead focus on owning a basket of Attractive-or-better-rated stocks.</p>
<p>
		Vonage Holdings (NYSE: <a class="ticker" href="/stock/vg#NYSE">VG</a>) is one of my favorite stocks held by Telecom ETFs and mutual funds and earns my Very Attractive rating. Vonage is one of only two Very Attractive Telecom stocks and it&rsquo;s one of my favorite types of companies. Companies like Vonage leverage technology to provide services more efficiently. Not only does Vonage lower the costs of communication for consumers, they do so in a profitable and efficient manner by avoiding the capital intensity of the legacy networks. Vonage&rsquo;s <a href="http://www.newconstructs.com/nc/help/glossary.htm#roicDef">return on invested capital</a> is the best in the Telecom sector by a wide margin. At 167.2%, VG&rsquo;s ROIC is amongst the elite value-creating companies. They have been able to achieve this impressive figure by managing their working capital to maximize cash flows. Vonage&rsquo;s 2011 <a href="http://www.newconstructs.com/nc/help/glossary.htm#nopat">NOPAT</a> was nearly double its 2009 level. Growing cash flows and surging ROIC indicate that Vonage&rsquo;s management is disciplined about maximizing shareholder value. The stock is also available at a bargain. The current valuation implies that Vonage&rsquo;s profits will permanently decline by 62%. Those low expectations make a profitable company like Vonage an attractive buy.</p>
<p>
		Leap Wireless International (NASDAQ: <a class="ticker" href="/stock/leap#NASDAQ">LEAP</a>) is one of my least favorite stocks held by Telecom ETFs and mutual funds and earns my Very Dangerous rating. LEAP is a consistent value-destroyer and should be avoided by investors who demand a return that is sufficient to compensate them for the use of their capital. LEAP has never earned a ROIC greater than its <a href="http://www.newconstructs.com/nc/help/glossary.htm#helpWacc">WACC</a>. While it&rsquo;s true that LEAP&rsquo;s NOPAT has slowly grown from 2005&rsquo;s level of $33.07 million to $116.51 million in 2011, that profit growth has come at a significant cost. LEAPs&rsquo; <a href="http://www.newconstructs.com/nc/help/glossary.htm#investedCapital">invested capital</a> has grown rapidly as well and their ROIC has never been higher than 3%. Returns that low will likely never generate value for shareholders.</p>
<p>
		41 stocks of the 3000+ I cover are classified as Telecom stocks, but due to style drift, Telecom ETFs and mutual funds hold 99 stocks.</p>
<p>
		Figures 4 and 5 show the rating landscape of all Telecom ETFs and mutual funds.</p>
<p>
		Our <a href="http://blog.newconstructs.com/2012/10/08/sector-rankings-for-etfs-mutual-funds/">Sector Rankings for ETFs and Mutual Funds</a> report ranks all sectors and highlights those that offer the best investments.</p>
<div>
<p>
			<strong>Figure 4: Separating the Best ETFs From the Worst ETFs</strong></p>
</div>
<div>
<p>
			<a href="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig4.jpg"><img alt="" class="aligncenter size-full wp-image-4732" height="245" src="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig4.jpg" title="TelecomFig4" width="409" /></a></p>
<p>
			Sources: New Constructs, LLC and company filings</p>
</div>
<div>
<p>
			<strong>Figure 5: Separating the Best Mutual Funds From the Worst Mutual Funds</strong></p>
</div>
<div>
<p>
			<a href="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig5.jpg"><img alt="" class="aligncenter size-full wp-image-4731" height="245" src="http://blog.newconstructs.com/wp-content/uploads/2012/10/TelecomFig5.jpg" title="TelecomFig5" width="409" /></a></p>
<p>
			Sources: New Constructs, LLC and company filings</p>
</div>
<p>
		Review my <a href="http://www.newconstructs.com/nc/fundscreener/fund-screener.htm?task=ACTION_CATEGORY_TYPE_SEARCH&amp;selectedTypes=0,1&amp;selectedCategoryIds=5d8c7cc0114e11e1a96300188b533b34">full list</a> of ratings and rankings along with reports on all 4 ETFs and 13 mutual funds in the Telecom sector.</p>
<p>
		<em>D</em><em>isclosure: I own VG. I receive no compensation to write about any specific stock, sector or&nbsp;theme.</em></p>
</div>


<p>Verizon Communications (NYSE: <a class="ticker" href="/stock/vz#NYSE">VZ</a>) is scheduled to report its first-quarter 2012 results tomorrow, April 19, before the markets open. </p>

<p>Verizon ended 2011 with improving top and bottom lines. Its wireless business remained healthy, with strong gross subscriber additions. The company also reduced its net debt to $41.8 billion from $46.1 billion at the end of the previous year. However, Verizon declined to release a financial forecast for the first quarter during its fourth-quarter report.</p>

<p><strong>Expectations</strong></p>

<p>Analysts on average predict that Verizon will say that per-share earnings rose 10.5% to $0.57. But that estimate has dropped by two cents in the past 60 days. And note that Verizon missed consensus estimates by penny per share in the previous quarter, ending a streak of three consecutive earnings beats. First-quarter revenue is forecast to have risen 4.5% from the same period of last year to total $28.2 billion.</p>

<p>Looking back to the fourth quarter, the company recorded its highest year-over-year quarterly revenue growth in 11 years, driven in part by continued strength in wireless services. Verizon pointed to the rapid expansion of 4G LTE services, strong adoption of Google (NASDAQ: <a class="ticker" href="/stock/goog#NASDAQ">GOOG</a>) Android smartphones and the sale of the Apple (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>) iPhone. However, the company reported that it lost $2.02 billion due to a charge for adjusting the value of its pension plans. Adjusted DPS came to $0.52 per share. As mentioned, that was a penny shy of the consensus forecast.</p>

<p>Looking ahead, analysts so far expect to see sequential and year-over-year growth of both per-share earnings and revenues in the current quarter. At this point, the full-year forecast calls for EPS that are 12.9% higher than in the previous year, as well as revenue up 3.8%.</p>

<p><strong>The Company</strong></p>

<p>Verizon Communications provides communications, information and entertainment products and services to consumers, businesses and governmental agencies worldwide. It operates in two segments, Verizon Wireless, which offers data services and applications via mobile broadband, and Wireline, which offers video services over its fiber-optic network. The company is headquartered in New York City, was founded in 1983, and now has a market cap of $107.0 billion.</p>

<p>Competitors include AT&amp;T (NYSE: <a class="ticker" href="/stock/t#NYSE">T</a>) and Sprint Nextel (NYSE: <a class="ticker" href="/stock/s#NYSE">S</a>). The former is expected to report first-quarter results that are marginally higher than a year ago; its numbers will be released on April 24. Analysts expect to see a wider net loss from Sprint when it reports a day later, but with revenues that are up 4.9% year over year.</p>

<p><em>See also:</em> <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/04/2492519/at-t-and-sprint-strive-to-illuminate-exclusive-spectrums">AT&amp;T and Sprint Strive to Illuminate Exclusive Spectrums</a></p>

<p>During the three months that ended in March, Verizon aggressively expanded its 4G LTE network, closed some U.S. call centers and announced a video deal with Redbox meant to challenge Netflix (NASDAQ: <a class="ticker" href="/stock/nflx#NASDAQ">NFLX</a>).</p>

<p><em>See also:</em> <a href="http://www.benzinga.com/news/12/02/2319875/verizon-and-coinstar-will-destroy-netflix">Verizon and Coinstar Will Destroy Netflix</a></p>

<p><strong>Performance</strong></p>

<p>Verizon has a long-term earnings per share growth forecast of 10.3% and a dividend yield of 5.3%. The operating margin is higher than the industry average and the forward earnings multiple is lower than the industry average PE ratio. And short interest is 1.5% of the float. But just 16 of 39 analysts polled who follow the stock recommend buying shares. Their mean price target on the shares is less than 5% higher than the current share price.</p>

<p>The share price is more than 3% lower than at the beginning of the year after falling about that much in the past month. It recently fell below the 200-day moving average for the first time this year but has climbed above it again. Over the past six months, the stock has outperformed AT&amp;T but underperformed Sprint Nextel and the broader markets.</p>

<p><em>See also:</em> <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/04/2489265/the-three-types-of-options-premium">The Three Types of Options Premium</a></p>

<div id="action-items"><p><strong>ACTION ITEMS</strong></p>

<p><strong>Bullish:</strong> Investors interested in exchange traded funds invested in Verizon might want to consider the following trades:</p>

<ul><li>Technology Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>) is about 18% higher year to date.</li>
<li>PowerShares Fundamental Pure Large Value (NYSE: PXLV) is more than 7% higher year to date.</li>
<li>ProShares Ultra Telecommunications (NYSE: <a class="ticker" href="/stock/ltl#NYSE">LTL</a>) is almost 6% higher year to date.</li>
<li>iShares Dow Jones US Telecom (NYSE: <a class="ticker" href="/stock/iyz#NYSE">IYZ</a>) is almost 5% higher year to date.</li>
</ul><strong>Bearish:</strong><p> Traders may prefer to consider these alternative positions in the domestic telecom industry:</p>

<ul><li>Equinix (NASDAQ: <a class="ticker" href="/stock/eqix#NASDAQ">EQIX</a>) is up more than 55% year to date.</li>
<li>TW Telecom (NASDAQ: <a class="ticker" href="/stock/twtc#NASDAQ">TWTC</a>) is up about 11% year to date.</li>
<li>CenturyLink (NYSE: <a class="ticker" href="/stock/ctl#NYSE">CTL</a>) is up more than 5% year to date.</li>
</ul><em>Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.</em></div>

Earnings

Long Ideas

Short Ideas

Previews

Trading Ideas

EQIX

NFLX

TWTC

Verizon Communications Earnings Preview: Double-Digit EPS Growth Expected

<p>Keeping with the theme of trying to play some defense in an environment of elevated equity correlations, we're following up our look at forgotten consumer staples ETFs by looking at another sector cherished for its defensive traits: Telecom.</p>

<p>While the divergence between Dow components AT&amp;T (NYSE: <a class="ticker" href="/stock/t#NYSE">T</a>) and Verizon (NYSE: <a class="ticker" href="/stock/vz#NYSE">VZ</a>) and the S&amp;P 500 isn't startling, on a year-to-date basis, both stocks have outperformed the broader market.</p>

<p>Maybe it's time for investors to capture some yield, play some defense and outperform, albeit slightly, the broader market with some telecom ETFs. Here are a few we have a feeling your broker forgot to tell you about.</p>

<p>Vanguard Telecommunications Services ETF (NYSE: <a class="ticker" href="/stock/vox#NYSE">VOX</a>):
The Vanguard Telecommunications Services ETF is home to 36 stocks and all the big boys of the U.S. telecom industry are found in this ETF. As is par for the course in many U.S.-focused telecom ETFs, VOX's top-10 holdings account for a huge share of the ETF's weight. In this case, we're talking about nearly 71%. On the bright side, VOX features a scant 0.24% expense ratio.</p>

<p>iShares MSCI ACWI ex-US Telecom Services Index Fund (NYSE: AXTE):
Compared to VOX, AXTE will cost you twice as much in fees (0.48%), but give you exposure to almost twice as many stocks (71) all hailing from outside the U.S. Given the robust yields found on many European telecom names, it's surprising AXTE hasn't attracted more than $2.7 million in assets under management. The ETF is still just 14 months old.</p>

<p>SPDR S&amp;P International Telecommunications Sector ETF (NYSE: <a class="ticker" href="/stock/ist#NYSE">IST</a>):
Apparently, investors really haven't dialed up international telecom ETFs because IST, which is barely different than AXTE, has just over $12 million in AUM. The SPDR offering is home to about 45 stocks and an expense ratio of 0.5%.</p>

<p>iShares S&amp;P Global Telecommunications Sector Index Fund (NYSE: <a class="ticker" href="/stock/ixp#NYSE">IXP</a>):
Home to 40 stocks and an expense ratio of 0.48%, IXP is one of the better bets for investors looking for global telecom exposure beyond Europe. Japan, Mexico, China and Australia account for about a quarter of this ETF's weight and maybe that's why it has nearly $400 million in AUM.</p>

<p>ProShares Ultra Telecommunications (NYSE: <a class="ticker" href="/stock/ltl#NYSE">LTL</a>):
Yep, there really is a leveraged telecom ETF. If you're anxious to quickly juice up your telecom returns, LTL is your weapon of choice. For a bearish play, try the ProShares UltraShort Telecommunications (NYSE: <a class="ticker" href="/stock/tll#NYSE">TLL</a>), but be advised both ETFs are thinly traded.</p>

Dividends

Intraday Update

SPDR S&P International Telecommunications Sector ETF

Five Telecom ETFs Your Broker Forgot to Mention

<p>Piper Jaffray reiterated its Overweight rating on FedEx (NYSE: <a class="ticker" href="/stock/fdx#NYSE">FDX</a>). At the same time, Piper Jaffray raised its price target on the company's stock from $116 to $126 after the company reported better than expected quarterly earnings results.</p>

<p>In a research report published today, Piper Jaffray states, "Yesterday before the market FDX reported F4Q11 continuing EPS of $1.76
(+29.5% y-o-y) above Consensus of $1.72 and our $1.67 estimate... Management's above
Consensus F2012 EPS guide and subsequent work on our model post F4Q11 results
have given us greater conviction in Express operating margin improvement
acceleration and Freight (<a class="ticker" href="/stock/ltl#">LTL</a>)'s strong swing to profitability during F2012. We've
raised our twelve month price target from $116 to $126 – and despite the raise – see
further material earnings/stock upside potential."</p>

<p>On Wednesday, FedEx added 2.59% to its value to end the day at $91.44. Its shares lost some of yesterday's gains in today's pre-market trading, falling 0.15% to $91.30.</p>

Analyst Color

Price Target

Analyst Ratings

Piper Jaffray Reiterates Overweight on FedEx, Raises PT to $126

<p>Piper Jaffray reiterated its Overweight rating on FedEx (NYSE: <a class="ticker" href="/stock/fdx#NYSE">FDX</a>). At the same time, Piper Jaffray left its price target on the company's stock unchanged at $116 ahead of the company's quarterly earnings report, which is due on Wednesday, June 22.</p>

<p>In a research report published today, Piper Jaffray states, "We believe F4Q11 upside potential is limited by
Express fuel and the final quarter of more difficult compensation expense.
However, FDX has margin improvement tailwind at its back beginning in F1Q12
with Express lapping tougher compensation and to a lesser extent maintenance
expense, sees greater benefit from air fleet revamp, and Freight (<a class="ticker" href="/stock/ltl#">LTL</a>) returns to
profitability post network merger. Management's introduction of F2012 EPS
guidance is the focus and our sense is – per historical guidance behavior and recent
stock correction – an in line to modestly below Consensus guide is more likely."</p>

<p>On Tuesday, FedEx added 1.76% to its value to close the day at $87.43.</p>

Piper Jaffray Reiterates Overweight and PT of $116 on FedEx

<p>According to J.P. Morgan, Con-way (NYSE: <a class="ticker" href="/stock/cnw#NYSE">CNW</a>) 1Q11 was sharply above expectations as the Freight (<a class="ticker" href="/stock/ltl#">LTL</a>) division operating margin improved 300 bp y/y.</p>

<p>J.P. Morgan said that lower healthcare costs sequentially and y/y provided a boost but even if healthcare costs were flat, CNW's EPS would have been significantly above expectations. “We are raising our EPS estimates and we expect a meaningful move up in CNW stock on Thursday but we think that a very aggressive EPS progression in '11 and '12 is still required to support significant medium term upside.”</p>

<p>Con-way closed yesterday at $37.60.
</p>

J.P. Morgan Raising EPS On Con-Way

<p>In a report published by Piper Jaffray, it has greater conviction in FedEx's (NYSE: <a class="ticker" href="/stock/fdx#NYSE">FDX</a>) F2010 earnings upside potential post F3Q11 results.</p>

<p>Piper Jaffray said that yesterday before the market FDX reported F3Q11 (ending Feb) continuing EPS of $0.81 – in the middle of the company's 2/14/11 downside pre-report range. “Most meaningful from yesterday's report – aside from mgmt seeing no derailment to global economic recovery – was (1) F4Q11 EPS guidance of $1.66-$1.83 with the midpoint 1% above prior implicit guidance and (2) Freight (<a class="ticker" href="/stock/ltl#">LTL</a>)'s network consolidation going surprisingly smoothly in a very difficult weather quarter and expectations for operating profit in F4Q11 which removes some overhang/risk. F2012 is setting itself up to be an exceptional year of earnings growth potential and we believe FDX is closer to entering a sustainable period of now beating expectations versus making/missing. We reiterate our Overweight rating.”</p>

<p>FedEx closed yesterday at $87.89.<br /></p>

Piper Jaffray Reports Greater Conviction In FedEx's F2010 Earnings

<p>Piper Jaffray is cutting its price target on shares of Con-Way, Inc. (NYSE: <a class="ticker" href="/stock/cnw#NYSE">CNW</a>) to $33, and is keeping its Neutral rating on shares.</p>
<p>In a note sent to clients, Piper Jaffray writes, "Yesterday before the market, CNW pre-reported downside 4Q10 EPS, which<br />
suggests a single digit EPS figure for the quarter vs. our prior $0.27 estimate and consensus $0.23. Downside was driven at Freight (<a class="ticker" href="/stock/ltl#">LTL</a>), due to unforeseen health care costs and holiday pay. While Freight (<a class="ticker" href="/stock/ltl#">LTL</a>) yields are accelerating and variable costs are being reduced, we remain concerned that a drastic strategy reversal could continue to result in underperforming profitability vs. EPS expectations. We've lowered our EPS estimates and our price target to $33. We remain Neutral rated (given strong Transport fundamentals and CNW operating leverage), but we have a near-term downward bias on the stock."</p>
<p>Shares of CNW gained 34 cents yesterday to close at $34.90, a gain of 1%.</p>


Piper Jaffray Cuts Price Target On Con-Way (CNW)

<p>
	<strong>FedEx Corporation </strong>(<a href="http://www.zacks.com/stock/quote/FDX">FDX</a>), the world's second-largest package delivery company, reported second quarter 2011 results on December 16, 2010. FedEx earnings missed the Zacks Consensus Estimate of $1.31. Though the company's third quarter and fiscal year 2011 outlook is encouraging, they are below the Zacks Consensus Estimates.</p>
<p>
	<strong>Second Quarter Review</strong></p>
<p>
	The company's adjusted earnings of $1.16 per share were below $1.10 in the year-ago quarter. Higher pension, higher aircraft maintenance expenses and the reinstatement of certain 401(k) employee compensation programs put a drag on the company's operating performance during the reported quarter.</p>
<p>
	Total revenue increased 12% year over year to $9.63 billion attributable to solid travel demand and healthy economy but was below the Zacks Consensus Estimate of $9.75 billion. The strong exports from Asia drove revenues in the FedEx Express segment.</p>
<p>
	Package vo<span style="background-color: rgb(255, 255, 255);">lume growth at FedEx Ground as well as FedEx SmartPost volume growth spurred FedEx Ground revenues. FedEx Freight revenue climbed 14% year over year, reflecting higher average daily less-than-truckload (<a class="ticker" href="/stock/ltl#">LTL</a>) shipments partially offset by lower yields.</span></p>
<p>
	<span style="background-color: rgb(255, 255, 255);">(Read our full coverage in this earnings report: FedEx Disappoints, Hurt by Charges)</span></p>
<p>
	<strong><span style="background-color: rgb(255, 255, 255);">Company Guidance</span></strong></p>
<p>
	<span style="background-color: rgb(255, 255, 255);">FedEx projects earnings in the range of 95 cents to $1.15 per share for the third quarter of 2011. The mid-point of $1.05 per share is well below the current Zacks Consensus Estimate of $1.09.</span></p>
<p>
	<span style="background-color: rgb(255, 255, 255);">FedEx raised its fiscal 2011 earnings estimate to $5.00 to $5.30 per share from its previous outlook of $4.80 to $5.25 on expected strong demand and yield improvements in the second half of 2011. Nevertheless, the mid-point of $5.025 is also below the current Zacks Consensus Estimate of $5.15.</span></p>
<p>
	<strong><span style="background-color: rgb(255, 255, 255);">Agreement of Analysts</span></strong></p>
<p>
	<span style="background-color: rgb(255, 255, 255);">The overall trend noticed in the last 7 days suggests that the analysts have regained their confidence, as they are more inclined toward the positive side in estimate revisions for the upcoming quarter and fiscal year.</span></p>
<p>
	<span style="background-color: rgb(255, 255, 255);">Over the last 7 days, out of 20 analysts covering the stock, 3 made upward revisions while 2 made downward revisions for the third quarter of 2011. For fiscal 2011, 3 analysts out of 23 revised their earnings estimates in both directions. For fiscal 2012, 7 analysts out of 23 revised their estimates on FedEx upward while none of them moved downward.</span></p>
<p>
	<span style="background-color: rgb(255, 255, 255);">In the second half of fiscal 2011, earnings growth at FedEx will likely be hampered by several cost headwinds such as increase in pension expense, higher volume-related aircraft maintenance expenses and resumption of certain 401(k) employee compensation programs. However, these costs headwinds are expected to fade off owing to the gradually improving global economic environment as well as stronger-than-expected consumer demand.</span></p>
<p>
	<span style="background-color: rgb(255, 255, 255);">The company is taking full advantage of the global economic recovery by investing strategically in key international growth markets, acquiring more efficient aircraft and streamlining its network. FedEx invests largely in aircraft and plans to increase its investment in fuel efficient Boeing 777 freighters, thereby raising its expenditure on aircraft.</span></p>
<p>
	<span style="background-color: rgb(255, 255, 255);">However, this investment will provide FedEx an edge over its competitors and will generate significant long-term savings, support international business growth as well as drive higher earnings, margins and returns.</span></p>
<p>
	<span style="background-color: rgb(255, 255, 255);">Further, FedEx's long-term goals of 10.0% revenue growth per year, more than 10.0% operating margin, earnings per share in the range of 10.0–15.0% per year, improving cash flows, and increasing returns on invested capital affirmed it confidence.                                                          </span></p>
<p>
	<strong><span style="background-color: rgb(255, 255, 255);">Magnitude – Consensus Estimate Trend</span></strong></p>
<p>
	<span style="background-color: rgb(255, 255, 255);">Over the last 7 days, the Zacks Consensus Estimate was raised by a penny for the upcoming quarter and a dime for fourth quarter 2011. This shows management's increased confidence in earnings growth during the second half.</span></p>
<p>
	<span style="background-color: rgb(255, 255, 255);">However, fiscal 2011 Zacks Consensus Estimate was reduced by one cent to $5.18. The Zacks Consensus Estimate for fiscal 2012 was raised by 3 cents to $6.29.</span></p>
<p>
	<strong><span style="background-color: rgb(255, 255, 255);">Earning Surprises</span></strong></p>
<p>
	<span style="background-color: rgb(255, 255, 255);">With respect to earnings surprises, the company's fairly good track record is expected to continue in the coming quarters. FedEx produced a negative average earnings surprise of 2.24% over the last four quarters, which suggests that it missed the Zacks Consensus Estimate by that amount over the last year. The company missed the Zacks Consensus Estimate in both the reported and the first quarters.</span></p>
<p>
	<strong><span style="background-color: rgb(255, 255, 255);">Neutral on FedEx</span></strong></p>
<p>
	<span style="background-color: rgb(255, 255, 255);">We believe FedEx will benefit from moderate economic growth followed by volume growth and strong yield across all the revenue segments will facilitate FedEx to generate strong revenue and earnings upside. The combination of FedEx Freight and FedEx National LTL operations from January 30, 2011 will reduce operating costs and bring back FedEx Freight to profitability in fiscal 2012.</span></p>
<p>
	<span style="background-color: rgb(255, 255, 255);">Following stiff competition from its close rival </span><strong><span style="background-color: rgb(255, 255, 255);">United Parcel Service Inc.</span></strong><span style="background-color: rgb(255, 255, 255);"> (</span><a href="http://www.zacks.com/stock/quote/<span style="background-color: rgb(255, 255, 255);">UPS"><span style="background-color: rgb(255, 255, 255);">UPS</span></a><span style="background-color: rgb(255, 255, 255);">), FedEx is boosting its international business through the enhancement of existing routes as well as strategic acquisitions.</span></p>
<p>
	<span style="background-color: rgb(255, 255, 255);">The company will acquire MultiPack, a Mexican domestic express package delivery company in the second quarter of calendar year 2011. FedEx Express also plans to acquire AFL Pvt. Ltd, a logistics, distribution and express business in India in the third quarter of fiscal 2011. These acquisitions will expand its network and enhance its capabilities in Mexico and India.</span></p>
<p>
	<span style="background-color: rgb(255, 255, 255);">Further, FedEx is committed to its shareholders in the form of dividends. However, reinstatement of employees' compensation program, increased pension expense, aircraft maintenance expense, volatile fuel prices and competitive threats will dampen near-term earnings growth.</span></p>
<p>
	<span style="background-color: rgb(255, 255, 255);">Consequently, we are recommending a Neutral rating on FedEx supported by the Zacks Rank of #3 (Hold).</span></p>
<p>
	<strong><span style="background-color: rgb(255, 255, 255);">About Earnings Estimate Scorecard</span></strong></p>
<p>
	<em><span style="background-color: rgb(255, 255, 255);">Len Zacks, PhD in mathematics from MIT, proved over 30 years ago that earnings estimate revisions are the most powerful force impacting stock prices. He turned this ground breaking discovery into two of the most celebrating stock rating systems in use today. The Zacks Rank for stock trading in a 1 to 3 month time horizon and the Zacks Recommendation for long-term investing (6+ months). These “Earnings Estimate Scorecard” articles help analyze the important aspects of estimate revisions for each stock after their quarterly earnings announcements. Learn more about earnings estimates and our proven stock ratings at: </span></em><em><span style="background-color: rgb(255, 255, 255);">http://www.zacks.com/education/</span></em></p>
<p><br /> <br /><a href="http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&amp;d_alert=ZER_LINK&amp;t=FDX&amp;ADID=BENZ_CONTENT_ZER">FEDEX CORP (<a class="ticker" href="/stock/fdx#">FDX</a>): Free Stock Analysis Report</a><br /> <br /><a href="http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&amp;d_alert=ZER_LINK&amp;t=UPS&amp;ADID=BENZ_CONTENT_ZER">UTD PARCEL SRVC (<a class="ticker" href="/stock/ups#">UPS</a>): Free Stock Analysis Report</a><br /> <br /><a href="http://www.zacks.com/">Zacks Investment Research</a></p>


FedEx: Earnings Scorecard - Analyst Blog

<p>Piper Jaffray is reiterating its Buy rating and $115 price target on shares of FedEx Corporation (NYSE: <a class="ticker" href="/stock/fdx#NYSE">FDX</a>) after it reported earnings yesterday.</p>
<p>In a note sent to clients, Piper Jaffray writes, "Yesterday before the market FDX reported F2Q11 continuing EPS of $1.16 (+11.1% y-o-y) which was below Consensus $1.31 and our $1.30 estimate. Downside to our estimate was driven by expense disappointments at Express ($0.11/share) and Ground ($0.02/share) as total revenue was modestly above our projection. Management raised its midpoint F2011 EPS 5% implying meaningful margin improvement during F2H11. Our Express and Freight (<a class="ticker" href="/stock/ltl#">LTL</a>) margin acceleration expectations remain very much in tact despite disappointing near term results. We reiterate our Overweight rating and $115 price target."</p>
<p>Shares of FDX gained $1.83 yesterday to close at $94.22, a gain of almost 2%.</p>


Piper Jaffray Reiterating Overweight On FedEx (FDX)

<p>Piper Jaffray raised the earnings estimates on United Parcel Service (NYSE: <a class="ticker" href="/stock/ups#NYSE">UPS</a>), as it previews the third quarter earnings report.  It rates shares at Overweight, with an $83 price target.</p>
<p>In the note sent to clients, Piper Jaffray writes, "UPS is scheduled to report 3Q10 EPS on Thursday, October 21st before the market. We've raised our 3Q10 EPS from $0.88 to $0.90 on increased conviction in upside at (1) International Package and (2) Supply Chain and Freight (<a class="ticker" href="/stock/ltl#">LTL</a>). 3Q10's report focus likely centers on future profit potential at Domestic Package as UPS cycles through a previously announced cost rationalization / network realignment program. Given program upfront costs mostly behind them UPS should start to show accelerating efficiency benefit within Domestic Package starting 3Q10. We reiterate our Overweight rating and $83 price target."</p>
<p>Shares of UPS gained $1.42 to close at $68.66, a gain of 2.1%.</p>


Piper Jaffray Ups Earnings Outlook For UPS (UPS)

<p>UPS Freight (NYSE: <a class="ticker" href="/stock/ups#NYSE">UPS</a>), the nation's fourth-largest Less-Than-Truckload (<a class="ticker" href="/stock/ltl#">LTL</a>) carrier, today announced a general rate increase averaging 5.9 percent covering non-contractual shipments in the United States, Canada and Mexico.</p>
<p>The rate adjustment takes effect on Oct. 18, 2010, and applies to minimum charge, LTL rates and accessorial charges.</p>
<p>UPS Freight, the over-the-road heavy freight division of UPS, offers a full range of regional, interregional and long-haul LTL and Truckload capabilities in all 50 states, the Virgin Islands, Puerto Rico and Guam along with comprehensive cross-border service in Canada and Mexico.</p>
<p>UPS's portfolio of services includes UPS WorldShip®, allowing both small package and freight customers the capability to create bills of lading, schedule freight pickups and receive rate quotes using a single system. </p>


Press Releases

UPS Raising Shipping Rates

<div><strong><br />
FedEx Corporation </strong>(<a href="http://www.zacks.com/stock/quote/fdx">FDX</a>), the world's second-largest package delivery company, reported first quarter fiscal 2011 results on September 16, 2010. FedEx earnings missed the Zacks Consensus Estimate by a penny. The company's second quarter and fiscal year 2011 outlook were also disappointing.</div>
<div> </div>
<div>Yesterday, FedEx announced plans to raise its Express shipping rates by an average of 3.9% for both U.S. domestic and export services, effective January 3, 2011. In addition, effective November 1, 2010, FedEx Freight and FedEx National rates will also be raised by 6.9% for less-than-truckload (<a class="ticker" href="/stock/ltl#">LTL</a>) shipments.</div>
<div> </div>
<div><strong>First Quarter Review</strong></div>
<div> </div>
<div>The company's adjusted earnings of $1.20 per share were above the year-ago earnings of 58 cents. Growth in International Express shipment as well as higher volumes in FedEx Ground segment, which was partially offset by resumption of certain 401(k) employee compensation programs, higher pension, higher aircraft maintenance expenses as well as operating loss at FedEx Freight, led to stronger earnings in the reported quarter.</div>
<div> </div>
<div>Total revenue increased 18% year over year to $9.46 billion and was in line with the Zacks Consensus Estimate. Strong exports from Latin America, Asia and the U.S. drove revenues in the FedEx Express segment. Package volume growth at FedEx Ground as well as FedEx SmartPost volume growth spurred FedEx Ground revenues. FedEx Freight revenue increased 28% year over year, reflecting higher average daily LTL shipments partially offset by lower yields. FedEx Freight is still operating at a loss.</div>
<div> </div>
<div>(Read our full coverage on this earnings report: <a href="http://www.zacks.com/stock/news/40235/FedEx+Misses+but+Doubles+Profit">FedEx Misses but Doubles Profit</a>)</div>
<div> </div>
<div><strong>Guidance</strong></div>
<div> </div>
<div>FedEx projects earnings in the range of $1.15 to $1.35 per share for the second quarter of fiscal 2011. The mid-point of $1.25 is well below the current Zacks Consensus Estimate of $1.33. FedEx raised its fiscal 2011 earnings estimate to $4.80 to $5.25 per share from its previous outlook of $4.60 to $5.20. The mid-point of $5.02 is also below the current Zacks Consensus Estimate of $5.21.</div>
<div> </div>
<div><strong>Agreement of Analysts</strong></div>
<div> </div>
<div>The overall trend noticed in the last 30 days suggests the analysts' concern on the stock as they appear more inclined toward the negative side in estimate revisions for the upcoming quarter. Out of 18 analysts covering the stock, 10 made downward revisions while 4 revised their estimates upward.</div>
<div> </div>
<div>These analysts are concerned that reinstatement of employees' compensation program and increased pension expense might dampen near-term earnings growth. FedEx continues to invest largely in new international service offerings, including the new Boeing 777 freighter, thereby raising the expenditure on aircraft. Going forward, this investment will provide FedEx an edge over its competitors. Moreover, volatile fuel prices may also keep earnings under pressure.</div>
<div> </div>
<div>For fiscal 2011, 8 out of 21 analysts covering the stock have made upward revisions. Only 4 analysts made downward revisions for the same period. The analysts are positive on the outlook for fiscal 2012 as 5 analysts made upward revisions while 3 moved in the opposite direction.</div>
<div> </div>
<div>Over the last 7 days, only one analyst revised its estimate upward for fiscal 2011 and 2012. There have been no revisions for the upcoming quarter.</div>
<div> </div>
<div>We believe resumption of industrial production growth, improved volume growth, and strong yield across all the revenue segments will facilitate FedEx to generate strong earnings growth in fiscal 2011. However, earnings growth for fiscal 2011 will be restricted due to higher pension costs, increased aircraft maintenance expense, higher health care costs and resumption of certain 401(k) employee compensation programs.</div>
<div> </div>
<div>FedEx Freight is currently operating at a loss and is a headwind for the company. Thus, the company plans to combine FedEx Freight and FedEx National LTL operations from January 30, 2011, which is expected to reduce operational costs and improve efficiencies and yields. This combination will turn FedEx Freight segment profitable in fiscal 2012 and help the ongoing yield management initiatives.</div>
<div> </div>
<div>Additionally, FedEx expects to invest about $3.5 billion in fiscal 2011, which will generate significant long-term savings, support international business growth and drive higher earnings, margins and returns.</div>
<div><span>                                                                                                                           </span></div>
<div><strong>Magnitude – Consensus Estimate Trend</strong></div>
<div> </div>
<div>First quarter results suggest no changes in the Zacks Consensus Estimate over the last 7 days for the upcoming quarter and fiscal 2011. However, for fiscal 2012, the Zacks Consensus Estimates inched up by a penny to $6.24 per share.</div>
<div> </div>
<div>Over the last 30 days, the Zacks Consensus Estimate reduced 3 cents and rose 4 cents for the first quarter 2011 and fiscal 2012, respectively. The Zacks Consensus Estimate for fiscal 2011 remains unchanged at $5.21.</div>
<div> </div>
<div><strong>Earning Surprises</strong></div>
<div> </div>
<div>With respect to earnings surprises, the company's fairly good track record is expected to persist in the coming quarters. FedEx produced an impressive average earnings surprise of 2.51% over the last four quarters, which suggest that it beat the Zacks Consensus Estimate by that amount over the last year. Nevertheless, the company fell short of the Zacks Consensus Estimate in the current quarter by a nominal 0.83%.</div>
<div> </div>
<div><strong>Our Analysis</strong></div>
<div> </div>
<div>Though the company has suffered from the economic recession over the last couple of years, improving global economy along with rising trade in international shipping is expected to fuel growth. FedEx is taking full advantage of the global economic recovery by investing strategically in key international growth markets, acquiring more efficient aircraft and streamlining its network. Management expects its earnings and revenues to improve throughout fiscal 2011.</div>
<div> </div>
<div>Further, a solid balance sheet and adequate financial flexibility along with continued cost management will likely create favorable operating leverage. Although operational weakness and restructuring of the Freight segment will pressure overall margins and earnings over the next several quarters, it will lead to profitability in the medium term. Thus, with improving trends and fundamentals, we do not see a significant downside, but view upside as somewhat limited due to numerous cost headwinds. We are currently recommending a Neutral rating on the shares with the Zacks #3 (Hold) Rank.</div>
<p><br /> <br /><a href="http://www.zacks.com/registration/pfp?ALERT=ZER_LINK&amp;d_alert=ZER_LINK&amp;t=FDX&amp;ADID=BENZ_CONTENT_ZER">FEDEX CORP (<a class="ticker" href="/stock/fdx#">FDX</a>): Free Stock Analysis Report</a><br /> <br /><a href="http://www.zacks.com/">Zacks Investment Research</a></p>


Earnings Scorecard: FedEx - Analyst Blog

<p>Piper Jaffray is reiterating its Overweight rating and $110 price target on Fedex, after the company reported earnings before the bell yesterday.</p>
<p>In the research note, Piper Jaffray writes, "FDX reported F1Q11 EPS of $1.20 (107% y-o-y growth) below our $1.25 estimate and Consensus $1.21. Downside to our estimate was all costs a large portion we believe one time related to (1) Express aircraft redeployment costs into ramping demand and (2) upped purchased transportation at Freight (<a class="ticker" href="/stock/ltl#">LTL</a>). F2Q11 EPS guidance was below Consensus and conservative in our opinion, however, full year F2011 EPS was raised. Our thesis remains intact despite the near term<br />
disappointment as we continue to see material EPS upside to our already above Consensus EPS estimates."</p>
<p>Shares of Fedex lost $3.22 yesterday to close at $82.72, a loss of 3.75%.</p>
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Piper Reiterates Overweight On Fedex, Sees Massive Upside (FDX)

<p>BOSTON (TheStreet) -- Stocks trading under $5 have limited analysts' coverage, so it's not a good sign for investors when most researchers recommend dumping shares. The following five U.S. stocks trade at less than $5 and have garnered the biggest number of "sell" ratings, making them vulnerable to analysts' bearish views.</p>
<p>5. YRC Worldwide (Nasdaq: <a class="ticker" href="/stock/yrcw#Nasdaq">YRCW</a>)<br />
Company Profile: YRC Worldwide offers transportation services.</p>
<p>Share Price: 29 cents (Sept. 8)</p>
<p>2010 Stock Performance: -65%</p>
<p>Analyst Consensus: Six analysts, or half of those covering YRC Worldwide, say investors should sell shares of the trucking company. Another five analysts rate YRC Worldwide as a "hold," and only one recommends buying the shares.</p>
<p>Bearish Case: Credit Suisse analyst Christopher Ceraso wrote in an Aug. 4 research note that while less-than-truckload (<a class="ticker" href="/stock/ltl#">LTL</a>) fundamentals are improving, YRC Worldwide "still faces substantial headwinds in 2011. We maintain our view that any future value from profitability will not fall in the hands of common equity shareholders; but, rather, will accrue to the banks and the Teamsters." Ceraso has an "underperform," or "sell," rating on the trucking giant and a price target of 50 cents. No other analyst publishes a price target.</p>
<p>4. Energy Conversion Devices (Nasdaq: <a class="ticker" href="/stock/ener#Nasdaq">ENER</a>)<br />
Company Profile: Energy Conversion Devices designs, makes and sells photovoltaic products, known as PV or solar laminates that generate clean, renewable energy by converting sunlight into electricity.</p>
<p>Share Price: $4.96 (Sept. 8)</p>
<p>2010 Stock Performance: -53%</p>
<p>Analyst Consensus: Nineteen research firms have coverage on Energy Conversion Devices, with six rating the stock a "sell." The other 13 analysts say investors should hold the shares. The average of eight recent stock price targets is $5.51, which is actually 11% above where the stock currently trades.</p>
<p>Bearish Case: Wedbush analyst Christine Hersey wrote in an Aug. 31 research note that while Energy Conversion Devices is making progress, it will likely continue "to struggle as oversupply conditions resume in 2011 and demand for niche products remains below expectations." Hersey has an "underperform" rating on the stock with a $4 price target.</p>
<p>To read the rest, head over to <a href="http://www.thestreet.com/story/10855480/2/5-stocks-under-5-with-most-sell-ratings.html"><b>TheStreet.com</b></a></p>


ENER

YRCW

5 Stocks Under $5 With Most 'Sell' Ratings

<p>In a market environment like this, investors looking to stash some cash in safe, high-yielding instruments could do a lot worse than the telecom sector. </p>
<p>It is certainly noteworthy that in the past month, while the Dow Jones Industrial Average and the S&amp;P 500 are both down about 4%, the shares of AT&amp;T (NYSE: <a class="ticker" href="/stock/t#NYSE">T</a>), CenturyLink (NYSE: <a class="ticker" href="/stock/ctl#NYSE">CTL</a>) and Verizon (NYSE: <a class="ticker" href="/stock/vz#NYSE">VZ</a>) are all positive.</p>
<p>All of those stocks and others in the telecom space are backed my juicy dividend yields, making this sector a good bet for some outperformance in a trying environment such as this one.</p>
<p>For the trader looking to turn a boring sector into something a little more exciting, there is the ProShares Ultra Telecommunications ETF (NYSE: <a class="ticker" href="/stock/ltl#NYSE">LTL</a>), which is a doubled leveraged play on the Dow Jones Telecommunications.</p>
<p>The yield on LTL is decent at almost 2.5% and a bullish ascending triangle formation can be spotted on the chart. LTL is trading above both its 50- and 200-day moving averages and if resistance at $42 is broken, LTL could find its way into the 50s.</p>
<p>The downside here is thin volume and a high expense ratio of 0.95%.</p>
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