Can Alcatel Sustain Its Rally in 2013?
In the following video, Fool analyst Andrew Tonner talks about Alcatel-Lucent (NYSE: ALU), and what investors can expect from the telecom stock in 2013.
After struggling for years, Alcatel is up 36.6% over the past month, reversing a bad year in which the stock had previously lost some 60% of its value. So, is Alcatel a buy? Andrew says not quite yet. But it's not a sell, either. With Alcatel in the midst of a cost-restructuring aimed at saving $1.5 billion, the company should see improved margins and other benefits from leaner operations.
But that doesn't change anything in the fundamental Alcatel story, Andrew says. Alcatel will still operate in a very competitive industry, competing not only with established rivals like Nokia (NYSE:NOK), but low-cost Asian providers as well.
So while things may be looking up in terms of operations, Alcatel still faces significant headwinds ahead in 2013. Andrew calls the stock a hold.
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The article Can Alcatel Sustain Its Rally in 2013? originally appeared on Fool.com.
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