3 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 28 points (-0.2%) at 13,217 as of Thursday, Dec. 13, 2012, 12:05 PM ET. The NYSE advances/declines ratio sits at 1,125 issues advancing vs. 1,742 declining with 157 unchanged.

The Telecommunications industry currently sits up 0.5% versus the S&P 500, which is down 0.3%. A company within the industry that fell today was China Telecom ( CHA), up 0.7%.

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

3. Nippon Telegraph & Telephone ( NTT) is one of the companies pushing the Telecommunications industry lower today. As of noon trading, Nippon Telegraph & Telephone is down $0.42 (-1.9%) to $21.71 on light volume Thus far, 100,030 shares of Nippon Telegraph & Telephone exchanged hands as compared to its average daily volume of 287,300 shares. The stock has ranged in price between $21.65-$21.72 after having opened the day at $21.68 as compared to the previous trading day's close of $22.13.

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 $54.1 billion and is part of the technology sector. The company has a P/E ratio of 10.8, below the S&P 500 P/E ratio of 17.7. Shares are down 12.7% year to date as of the close of trading on Wednesday. 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 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 Nippon Telegraph & Telephone Ratings Report now.

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2. As of noon trading, NTT DoCoMo ( DCM) is down $0.11 (-0.8%) to $14.43 on light volume Thus far, 92,040 shares of NTT DoCoMo exchanged hands as compared to its average daily volume of 483,300 shares. The stock has ranged in price between $14.41-$14.50 after having opened the day at $14.49 as compared to the previous trading day's close of $14.54.

NTT DOCOMO, INC. provides mobile telephone services over its long term evolution and W-CDMA networks. NTT DoCoMo has a market cap of $60.8 billion and is part of the technology sector. The company has a P/E ratio of 13.0, below the S&P 500 P/E ratio of 17.7. Shares are down 20.8% year to date as of the close of trading on Wednesday. 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 somewhat disappointing return on equity. Get the full NTT DoCoMo Ratings Report now.

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1. As of noon trading, China Unicom (Hong Kong ( CHU) is down $0.12 (-0.7%) to $15.99 on light volume Thus far, 164,723 shares of China Unicom (Hong Kong exchanged hands as compared to its average daily volume of 653,100 shares. The stock has ranged in price between $15.97-$16.05 after having opened the day at $16.02 as compared to the previous trading day's close of $16.11.

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 $37.9 billion and is part of the technology sector. The company has a P/E ratio of 57.5, above the S&P 500 P/E ratio of 17.7. Shares are down 23.8% year to date as of the close of trading on Wednesday. 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.

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If you are interested in one of these 5 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.

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