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.

The Telecommunications industry as a whole closed the day down 1.0% versus the S&P 500, which was down 0.5%. Laggards within the Telecommunications industry included

Maxcom Telecomunicaciones SAB de CV

(

MXT

), down 4.4%,

RIT Technologies

(

RITT

), down 3.1%,

EXFO

(

EXFO

), down 1.6%,

Wireless Telecom Group

(

WTT

), down 2.0% and

iPass

(

IPAS

), down 6.2%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

EXFO

(

EXFO

) is one of the companies that pushed the Telecommunications industry lower today. EXFO was down $0.07 (1.6%) to $4.35 on light volume. Throughout the day, 22,254 shares of EXFO exchanged hands as compared to its average daily volume of 45,700 shares. The stock ranged in price between $4.29-$4.35 after having opened the day at $4.32 as compared to the previous trading day's close of $4.42.

EXFO Inc. provides test and service assurance solutions for wireline and wireless network operators and equipment manufacturers in the telecommunications industry. EXFO has a market cap of $124.5 million and is part of the technology sector. Shares are down 7.1% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates EXFO a buy, 2 analysts rate it a sell, and 3 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

EXFO

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and unimpressive growth in net income.

Highlights from TheStreet Ratings analysis on EXFO go as follows:

  • This stock has managed to decline in share value by 1.59% over the past twelve months. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Communications Equipment industry. The net income has significantly decreased by 3533.3% when compared to the same quarter one year ago, falling from $0.04 million to -$1.34 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Communications Equipment industry and the overall market, EXFO INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for EXFO INC is rather high; currently it is at 60.78%. Regardless of EXFO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EXFO's net profit margin of -2.61% significantly underperformed when compared to the industry average.
  • EXFO, with its decline in revenue, underperformed when compared the industry average of 2.3%. Since the same quarter one year prior, revenues fell by 18.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here:

EXFO 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,

RIT Technologies

(

RITT

) was down $0.05 (3.1%) to $1.57 on light volume. Throughout the day, 18,982 shares of RIT Technologies exchanged hands as compared to its average daily volume of 117,000 shares. The stock ranged in price between $1.57-$1.69 after having opened the day at $1.67 as compared to the previous trading day's close of $1.62.

RiT Technologies Ltd. provides intelligent infrastructure management (IIM) and indoor optical wireless technology solutions. Its IIM products enhance security and network utilization for data centers, communication rooms, and work space environments. RIT Technologies has a market cap of $20.7 million and is part of the technology sector. Shares are down 8.0% year-to-date as of the close of trading on Monday.

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

RIT Technologies

as a

sell

. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on RITT go as follows:

  • RITT's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 65.67%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Communications Equipment industry and the overall market, RIT TECHNOLOGIES LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite currently having a low debt-to-equity ratio of 0.35, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that RITT's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.89 is high and demonstrates strong liquidity.
  • 40.28% is the gross profit margin for RIT TECHNOLOGIES LTD which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -93.84% is in-line with the industry average.
  • RIT TECHNOLOGIES LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, RIT TECHNOLOGIES LTD continued to lose money by earning -$1.05 versus -$1.92 in the prior year.

You can view the full analysis from the report here:

RIT Technologies 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.

Maxcom Telecomunicaciones SAB de CV

(

MXT

) was another company that pushed the Telecommunications industry lower today. Maxcom Telecomunicaciones SAB de CV was down $0.08 (4.4%) to $1.73 on light volume. Throughout the day, 1,400 shares of Maxcom Telecomunicaciones SAB de CV exchanged hands as compared to its average daily volume of 29,600 shares. The stock ranged in price between $1.71-$1.75 after having opened the day at $1.73 as compared to the previous trading day's close of $1.81.

Maxcom Telecomunicaciones, S.A.B. de C.V., an integrated telecommunication services operator, provides voice and data services to residential and small and medium-sized business customers in Mexico. Maxcom Telecomunicaciones SAB de CV has a market cap of $757.1 million and is part of the technology sector. Shares are up 11.0% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Maxcom Telecomunicaciones SAB de CV a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates

Maxcom Telecomunicaciones SAB de CV

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself.

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

Highlights from TheStreet Ratings analysis on MXT go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Diversified Telecommunication Services industry. The net income has significantly decreased by 326.8% when compared to the same quarter one year ago, falling from $2.97 million to -$6.74 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Diversified Telecommunication Services industry and the overall market, MAXCOM TELECOMUNICACIONES SA's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $9.47 million or 36.50% 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.
  • Even though the current debt-to-equity ratio is 1.21, it is still below the industry average, suggesting that this level of debt is acceptable within the Diversified Telecommunication Services industry. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.32 is very low and demonstrates very weak liquidity.
  • The share price of MAXCOM TELECOMUNICACIONES SA has not done very well: it is down 21.40% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.

You can view the full analysis from the report here:

Maxcom Telecomunicaciones SAB de CV 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.