Sprint - Final Thoughts

Ticker Symbol: S


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Final Thoughts

Sprint Nextel has long been an underperformer in the telco space with meager stock performance over the past several years. Systematic risk currently facing the market has only added to the troubles of the already struggling firm. Sprint Nextel has been performing far below competitors since 2006, and this gap has only continued to widen. The difference separating Sprint Nextel share price and that of leaders like Verizon and AT&T is over $20/share, making it a far third in the market. These struggles, along with its sparse dividend policy, do little to make it an attractive asset.

Considering the major decrease in consumer spending during the first part of 2009, a trend which is expected to continue, Sprint Nextel will have to work extra hard to reverse its already declining customer numbers. In an increasingly competitive industry where leaders are bitterly fighting for market share, Sprint Nextel faces a tough challenge. Still, for those who predict some growth in the telecommunications industry, Sprint Nextel can be purchased at bargain prices, well below those of its competitors. The launch of the much anticipated Palm Pre has the potential to add some value back to the company and stimulate growth in price/share in the coming weeks.

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