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 52 points (0.4%) at 12,867 as of Tuesday, Nov. 13, 2012, 11:54 AM ET. The NYSE advances/declines ratio sits at 1,426 issues advancing vs. 1,481 declining with 120 unchanged.

The Technology sector currently sits down 0.1% versus the S&P 500, which is up 0.5%. On the negative front, top decliners within the sector include China Telecom ( CHA), down 2.8%, Telefonica Brasil S.A ( VIV), down 1.5%, China Unicom (Hong Kong ( CHU), down 1.4%, America Movil S.A.B. de C.V ( AMOV), down 0.7% and Intel ( INTC), down 0.6%. Top gainers within the sector include Telefonica ( TEF), up 1.7%, AT&T ( T), up 1.4%, BT Group ( BT), up 1.3% and Siemens ( SI), up 0.5%.

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

3. Hewlett-Packard ( HPQ) is one of the companies pushing the Technology sector lower today. As of noon trading, Hewlett-Packard is down $0.18 (-1.3%) to $13.23 on average volume Thus far, 10.2 million shares of Hewlett-Packard exchanged hands as compared to its average daily volume of 26.6 million shares. The stock has ranged in price between $13.20-$13.40 after having opened the day at $13.34 as compared to the previous trading day's close of $13.41.

Hewlett-Packard Company and its subsidiaries provide products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. Hewlett-Packard has a market cap of $26.8 billion and is part of the computer hardware industry. The company has a P/E ratio of -4.9, below the S&P 500 P/E ratio of 17.7. Shares are down 47.9% year to date as of the close of trading on Monday. Currently there are 3 analysts that rate Hewlett-Packard a buy, 8 analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates Hewlett-Packard as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk. Get the full Hewlett-Packard Ratings Report now.

2. As of noon trading, Baidu ( BIDU) is down $3.85 (-3.7%) to $100.75 on average volume Thus far, 3.6 million shares of Baidu exchanged hands as compared to its average daily volume of 5.5 million shares. The stock has ranged in price between $100.38-$103.62 after having opened the day at $103.54 as compared to the previous trading day's close of $104.60.

Baidu, Inc. provides Internet search services. The company offers a Chinese language search platform on its Website, Baidu.com; and a Japanese language search platform on its Website, Baidu.jp. Baidu has a market cap of $36.3 billion and is part of the internet industry. The company has a P/E ratio of 19.4, above the S&P 500 P/E ratio of 17.7. Shares are down 10.9% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Baidu a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Baidu as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income 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 Baidu Ratings Report now.

1. As of noon trading, Microsoft Corporation ( MSFT) is down $0.79 (-2.8%) to $27.20 on heavy volume Thus far, 72.5 million shares of Microsoft Corporation exchanged hands as compared to its average daily volume of 45.0 million shares. The stock has ranged in price between $26.75-$27.27 after having opened the day at $27.02 as compared to the previous trading day's close of $27.99.

Microsoft Corporation develops, licenses, and supports software products and services; and designs and sells hardware worldwide. Microsoft Corporation has a market cap of $242.6 billion and is part of the computer software & services industry. The company has a P/E ratio of 15.6, below the S&P 500 P/E ratio of 17.7. Shares are up 8.7% year to date as of the close of trading on Monday. Currently there are 19 analysts that rate Microsoft Corporation a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Microsoft Corporation as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, increase in stock price during the past year, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Microsoft Corporation 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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