Are We Seeing a Cell Turnaround?

Todd Rosenbluth, S&P's telecom equity analyst, has a neutral outlook on wireless telecommunications, despite a solid 2007 so far

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By Sam Stovall

July 25, 2007 at 9:01 AM UTC

This article is for subscribers only.

While flipping through the rolling 12-month relative strength charts for the 138 subindustries in the Standard & Poor's Composite 1,500 index (which consists of the large-cap S&P 500, MidCap 400 and SmallCap 600 indices), I noticed a smooth-looking turnaround in momentum for the S&P Wireless Telecom group. Year-to-date through June 20, the subindustry index rose 16.2%, vs. an 8.6% advance for the S&P 1,500 index. In 2006, the subindustry index was down 1.1%, vs. a 13.3% advance for the broader market.

Wondering if this was a turning point for the subindustry, I retrieved the fundamental outlook on the group from S&P's Advisor Insight service. Todd Rosenbluth is S&P's equity analyst for the wireless telecom group, and this is his most recent review of the group's prospects.