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

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 1 points (-0.0%) at 13,971 as of Friday, Feb. 15, 2013, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,429 issues advancing vs. 1,408 declining with 163 unchanged.

The Telecommunications industry currently sits down 0.2% versus the S&P 500, which is unchanged. On the negative front, top decliners within the industry include Telecom Italia SpA ( TI), down 2.2%, Nippon Telegraph & Telephone ( NTT), down 1.9%, Telefonica ( TEF), down 2.0%, NTT DoCoMo ( DCM), down 0.8% and Siemens ( SI), down 0.5%. Top gainers within the industry include BT Group ( BT), up 0.8%, America Movil S.A.B. de C.V ( AMOV), up 0.6% and Ericsson Telephone Company ( ERIC), up 0.6%.

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

3. Tim Holding Company ( TSU) is one of the companies pushing the Telecommunications industry lower today. As of noon trading, Tim Holding Company is down $0.65 (-3.0%) to $20.78 on average volume Thus far, 572,337 shares of Tim Holding Company exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $20.72-$20.95 after having opened the day at $20.95 as compared to the previous trading day's close of $21.43.

TIM Participacoes S.A., through its subsidiaries, provides mobile telecommunications services using digital technologies to business and individual customers in Brazil. The company offers mobile, fixed and long distance telephony, data transmission and Internet services. Tim Holding Company has a market cap of $10.4 billion and is part of the technology sector. The company has a P/E ratio of 14.2, below the S&P 500 P/E ratio of 17.7. Shares are up 8.4% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate Tim Holding Company a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Tim Holding Company 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, increase in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Tim Holding Company Ratings Report now.

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2. As of noon trading, Telefonica Brasil S.A ( VIV) is down $0.44 (-1.7%) to $24.94 on average volume Thus far, 496,905 shares of Telefonica Brasil S.A exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $24.90-$25.22 after having opened the day at $25.08 as compared to the previous trading day's close of $25.38.

Telefonica Brasil, S.A. provides fixed-line telecommunications services to residential and commercial customers in the state of Sao Paulo, Brazil. Telefonica Brasil S.A has a market cap of $28.8 billion and is part of the technology sector. The company has a P/E ratio of 6.5, below the S&P 500 P/E ratio of 17.7. Shares are up 6.4% year to date as of the close of trading on Thursday. Currently there are 4 analysts that rate Telefonica Brasil S.A a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Telefonica Brasil S.A as a hold. 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 and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and a generally disappointing performance in the stock itself. Get the full Telefonica Brasil S.A Ratings Report now.

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1. As of noon trading, Research in Motion ( BBRY) is down $0.51 (-3.4%) to $14.56 on heavy volume Thus far, 53.8 million shares of Research in Motion exchanged hands as compared to its average daily volume of 63.3 million shares. The stock has ranged in price between $14.32-$15.49 after having opened the day at $15.30 as compared to the previous trading day's close of $15.07.

BlackBerry designs, manufactures, and markets wireless solutions worldwide. Research in Motion has a market cap of $7.3 billion and is part of the technology sector. Shares are up 17.9% year to date as of the close of trading on Thursday. Currently there are 4 analysts that rate Research in Motion a buy, 16 analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Research in Motion as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and poor profit margins. Get the full Research in Motion Ratings Report now.

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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.
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