4 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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 24 points (-0.2%) at 13,886 as of Thursday, Jan. 31, 2013, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,305 issues advancing vs. 1,515 declining with 144 unchanged.

The Technology sector currently sits up 0.2% versus the S&P 500, which is down 0.3%. On the negative front, top decliners within the sector include Research in Motion ( RIMM), down 7.0%, Nokia Oyj ( NOK), down 4.2%, Yahoo ( YHOO), down 2.6%, Kyocera Corporation ( KYO), down 2.1% and Baidu ( BIDU), down 0.9%. Top gainers within the sector include Citrix Systems ( CTXS), up 10.0%, Ericsson Telephone Company ( ERIC), up 8.6%, NTT DoCoMo ( DCM), up 2.8%, China Unicom (Hong Kong ( CHU), up 1.1% and AT&T ( T), up 1.1%.

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

4. Telefonica ( TEF) is one of the companies pushing the Technology sector lower today. As of noon trading, Telefonica is down $0.12 (-0.8%) to $14.42 on average volume Thus far, 666,937 shares of Telefonica exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $14.42-$14.60 after having opened the day at $14.53 as compared to the previous trading day's close of $14.54.

Telefonica, S.A. provides fixed and mobile telephony services primarily in Spain, Latin America, and rest of Europe. Telefonica has a market cap of $66.3 billion and is part of the telecommunications industry. The company has a P/E ratio of 57.4, above the S&P 500 P/E ratio of 17.7. Shares are up 8.2% year to date as of the close of trading on Wednesday. Currently there are no analysts that rate Telefonica a buy, 2 analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Telefonica as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, poor profit margins and a generally disappointing performance in the stock itself. Get the full Telefonica Ratings Report now.

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