Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Two out of the three major indices are trading lower today with the

Dow Jones Industrial Average

(

^DJI

) trading down 141.38 points (-0.8%) at 17,673 as of Friday, Jan. 23, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,370 issues advancing vs. 1,694 declining with 158 unchanged.

The Telecommunications industry as a whole closed the day up 0.2% versus the S&P 500, which was down 0.5%. Top gainers within the Telecommunications industry included

WPCS International

(

WPCS

), up 5.6%,

RELM Wireless

(

RWC

), up 2.0%,

Pointer Telocation

(

PNTR

), up 3.6%,

Ikanos Communications

(

IKAN

), up 12.1% and

Telecom Italia SpA

(

TI.A

), up 2.4%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Pointer Telocation

(

PNTR

) is one of the companies that pushed the Telecommunications industry higher today. Pointer Telocation was up $0.29 (3.6%) to $8.38 on average volume. Throughout the day, 14,500 shares of Pointer Telocation exchanged hands as compared to its average daily volume of 13,300 shares. The stock ranged in a price between $8.00-$8.47 after having opened the day at $8.00 as compared to the previous trading day's close of $8.09.

Pointer Telocation Ltd. provides mobile resource management products and services for the automotive, insurance industries, and other mobile tracking markets worldwide. The company operates in two segments, Cellocator and Pointer. Pointer Telocation has a market cap of $62.0 million and is part of the technology sector. Shares are down 1.2% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Pointer Telocation a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates Pointer Telocation as a

hold

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.

Highlights from TheStreet Ratings analysis on PNTR go as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 36.5% when compared to the same quarter one year prior, rising from $0.78 million to $1.07 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.3%. Since the same quarter one year prior, revenues slightly increased by 5.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.80 is somewhat weak and could be cause for future problems.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, PNTR has underperformed the S&P 500 Index, declining 24.84% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Net operating cash flow has decreased to $1.10 million or 44.07% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

You can view the full analysis from the report here:

Pointer Telocation Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close,

RELM Wireless

(

RWC

) was up $0.10 (2.0%) to $4.97 on heavy volume. Throughout the day, 60,857 shares of RELM Wireless exchanged hands as compared to its average daily volume of 16,800 shares. The stock ranged in a price between $4.61-$5.24 after having opened the day at $4.80 as compared to the previous trading day's close of $4.87.

RELM Wireless Corporation designs, manufactures, and markets wireless communications products under the BK Radio and RELM brand names in the United States and internationally. Its products include two-way land mobile radios, repeaters, base stations, and related components and subsystems. RELM Wireless has a market cap of $66.3 million and is part of the technology sector. Shares are up 1.5% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate RELM Wireless a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates

RELM Wireless

as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on RWC go as follows:

  • The revenue growth came in higher than the industry average of 5.5%. Since the same quarter one year prior, revenues rose by 14.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • RWC's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.89, which clearly demonstrates the ability to cover short-term cash needs.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Communications Equipment industry average. The net income increased by 27.4% when compared to the same quarter one year prior, rising from $0.51 million to $0.66 million.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 32.84% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • RELM WIRELESS CORP has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, RELM WIRELESS CORP reported lower earnings of $0.08 versus $0.16 in the prior year.

You can view the full analysis from the report here:

RELM Wireless Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

WPCS International

(

WPCS

) was another company that pushed the Telecommunications industry higher today. WPCS International was up $0.01 (5.6%) to $0.19 on light volume. Throughout the day, 70,741 shares of WPCS International exchanged hands as compared to its average daily volume of 193,700 shares. The stock ranged in a price between $0.18-$0.20 after having opened the day at $0.20 as compared to the previous trading day's close of $0.18.

WPCS International has a market cap of $2.4 million and is part of the technology sector. Shares are down 35.3% year-to-date as of the close of trading on Thursday.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.