3 Stocks Pushing The Technology Sector Lower

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 146 points (1.1%) at 13,259 as of Tuesday, Nov. 6, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 2,070 issues advancing vs. 801 declining with 135 unchanged.

The Technology sector currently sits up 0.4% versus the S&P 500, which is up 0.9%. On the negative front, top decliners within the sector include ServiceSource International ( SREV), down 37.2%, BroadSoft ( BSFT), down 15.7%, Nationstar Mortgage Holdings ( NSM), down 8.6%, MSCI ( MSCI), down 4.6% and CGI Group ( GIB), down 4.2%. Top gainers within the sector include Computer Sciences Corporation ( CSC), up 15.6%, AOL ( AOL), up 12.6%, Tim Holding Company ( TSU), up 5.5%, TE Connectivity ( TEL), up 4.0% and Citrix Systems ( CTXS), up 3.7%.

TheStreet Ratings group would like to highlight 3 stocks pushing the sector lower today:

3. Frontier Communications Corp Class B ( FTR) is one of the companies pushing the Technology sector lower today. As of noon trading, Frontier Communications Corp Class B is down $0.16 (-3.6%) to $4.48 on heavy volume Thus far, 14.4 million shares of Frontier Communications Corp Class B exchanged hands as compared to its average daily volume of 9.3 million shares. The stock has ranged in price between $4.15-$4.70 after having opened the day at $4.64 as compared to the previous trading day's close of $4.64.

Frontier Communications Corporation provides communications services for residential and business customers in the United States. Frontier Communications Corp Class B has a market cap of $4.5 billion and is part of the telecommunications industry. The company has a P/E ratio of 45.1, above the S&P 500 P/E ratio of 17.7. Shares are down 12.4% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate Frontier Communications Corp Class B a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Frontier Communications Corp Class B as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity. Get the full Frontier Communications Corp Class B Ratings Report now.

2. As of noon trading, Broadcom Corporation ( BRCM) is down $0.27 (-0.9%) to $31.31 on average volume Thus far, 3.2 million shares of Broadcom Corporation exchanged hands as compared to its average daily volume of 6.8 million shares. The stock has ranged in price between $31.29-$31.68 after having opened the day at $31.67 as compared to the previous trading day's close of $31.58.

Broadcom Corporation designs and develops semiconductor solutions for wired and wireless communications. It provides a portfolio of system-on-a-chip (SoC) and software solutions. Broadcom Corporation has a market cap of $16.1 billion and is part of the electronics industry. The company has a P/E ratio of 19.7, above the S&P 500 P/E ratio of 17.7. Shares are up 7.1% year to date as of the close of trading on Monday. Currently there are 33 analysts that rate Broadcom Corporation a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Broadcom Corporation 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, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Broadcom Corporation Ratings Report now.

1. As of noon trading, LinkedIn ( LNKD) is down $3.00 (-2.8%) to $104.28 on average volume Thus far, 893,040 shares of LinkedIn exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $103.33-$107.55 after having opened the day at $106.14 as compared to the previous trading day's close of $107.29.

LinkedIn Corporation operates an online professional network. LinkedIn has a market cap of $9.3 billion and is part of the internet industry. The company has a P/E ratio of 711.9, above the S&P 500 P/E ratio of 17.7. Shares are up 69.5% year to date as of the close of trading on Monday. Currently there are 16 analysts that rate LinkedIn a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates LinkedIn as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and premium valuation. Get the full LinkedIn Ratings Report now.

If you are interested in one of these 5 stocks, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

A reminder about TheStreet Ratings group: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
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