4 Stocks Pushing The Telecommunications Industry 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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 20 points (-0.2%) at 12,795 as of Monday, Nov. 12, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,283 issues advancing vs. 1,555 declining with 129 unchanged.

The Telecommunications industry currently sits down 0.2% versus the S&P 500, which is down 0.1%. On the negative front, top decliners within the industry include America Movil S.A.B. de C.V ( AMOV), down 1.9%, American Tower ( AMT), down 0.7% and China Telecom ( CHA), down 0.7%.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry lower today:

4. NTT DoCoMo ( DCM) is one of the companies pushing the Telecommunications industry lower today. As of noon trading, NTT DoCoMo is down $0.13 (-0.9%) to $14.33 on heavy volume Thus far, 855,727 shares of NTT DoCoMo exchanged hands as compared to its average daily volume of 400,200 shares. The stock has ranged in price between $14.26-$14.47 after having opened the day at $14.40 as compared to the previous trading day's close of $14.46.

NTT DOCOMO, INC. provides mobile telephone services over its long term evolution (LTE) and W-CDMA networks. NTT DoCoMo has a market cap of $60.3 billion and is part of the technology sector. The company has a P/E ratio of 12.9, below the S&P 500 P/E ratio of 17.7. Shares are down 21.2% year to date as of the close of trading on Friday. Currently there are no analysts that rate NTT DoCoMo a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates NTT DoCoMo 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, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full NTT DoCoMo Ratings Report now.

3. As of noon trading, Nippon Telegraph & Telephone ( NTT) is down $0.37 (-1.6%) to $22.92 on light volume Thus far, 81,514 shares of Nippon Telegraph & Telephone exchanged hands as compared to its average daily volume of 293,900 shares. The stock has ranged in price between $22.91-$23.07 after having opened the day at $23.07 as compared to the previous trading day's close of $23.29.

Nippon Telegraph and Telephone Corporation, together with its subsidiaries, provides fixed and mobile voice related services, IP/packet communications services, telecommunications equipment, and system integration and other telecommunications-related services in Japan. Nippon Telegraph & Telephone has a market cap of $55.7 billion and is part of the technology sector. The company has a P/E ratio of 11.1, below the S&P 500 P/E ratio of 17.7. Shares are down 10.1% year to date as of the close of trading on Friday. Currently there are 2 analysts that rate Nippon Telegraph & Telephone a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Nippon Telegraph & Telephone 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, attractive valuation levels, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Nippon Telegraph & Telephone Ratings Report now.

2. As of noon trading, China Unicom (Hong Kong ( CHU) is down $0.26 (-1.7%) to $15.13 on light volume Thus far, 240,814 shares of China Unicom (Hong Kong exchanged hands as compared to its average daily volume of 746,900 shares. The stock has ranged in price between $14.97-$15.14 after having opened the day at $15.04 as compared to the previous trading day's close of $15.39.

China Unicom (Hong Kong) Limited, an investment holding company, engages in the provision of GSM and WCDMA cellular, and related telecommunications services primarily in the People's Republic of China. China Unicom (Hong Kong has a market cap of $36.4 billion and is part of the technology sector. The company has a P/E ratio of 55.2, above the S&P 500 P/E ratio of 17.7. Shares are down 27.2% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate China Unicom (Hong Kong a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates China Unicom (Hong Kong as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins. Get the full China Unicom (Hong Kong Ratings Report now.

1. As of noon trading, Ericsson Telephone Company ( ERIC) is down $0.07 (-0.8%) to $8.72 on light volume Thus far, 669,739 shares of Ericsson Telephone Company exchanged hands as compared to its average daily volume of 3.9 million shares. The stock has ranged in price between $8.68-$8.74 after having opened the day at $8.74 as compared to the previous trading day's close of $8.79.

Ericsson provides communications equipment, professional services, and multimedia solutions to mobile and fixed networks operators worldwide. Ericsson Telephone Company has a market cap of $29.1 billion and is part of the technology sector. The company has a P/E ratio of 15.8, below the S&P 500 P/E ratio of 17.7. Shares are down 13.0% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate Ericsson Telephone Company a buy, 1 analyst rates it a sell, and 8 rate it a hold.

TheStreet Ratings rates Ericsson Telephone Company as a hold. 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 and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself. Get the full Ericsson Telephone Company Ratings Report now.

If you are interested in one of these 4 stocks, ETFs may be of interest. Investors who are bullish on the telecommunications industry could consider iShares Dow Jones US Telecom ( IYZ) while those bearish on the telecommunications industry could consider ProShares Ult Sht Telecommunication ( TLL).

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.

null

More from Markets

Stocks Extend Gains Amid Progress on U.S.-China Trade

Stocks Extend Gains Amid Progress on U.S.-China Trade

Micron Spikes After $10 Billion Buyback Plan Caps Bullish Q3 Earnings Forecast

Micron Spikes After $10 Billion Buyback Plan Caps Bullish Q3 Earnings Forecast

J.C. Penney Shares Fall as CEO Marvin Ellison Resigns to Head Lowe's

J.C. Penney Shares Fall as CEO Marvin Ellison Resigns to Head Lowe's

U.S. Crude Oil Hits Fresh 3-Year Highs as Gas Prices March to $3 a Gallon

U.S. Crude Oil Hits Fresh 3-Year Highs as Gas Prices March to $3 a Gallon

Oil Prices, China Tariffs, Micron and Kohl's - 5 Things You Must Know

Oil Prices, China Tariffs, Micron and Kohl's - 5 Things You Must Know