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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 10 points (0.1%) at 14,085 as of Thursday, Feb. 28, 2013, 12:04 PM ET. The NYSE advances/declines ratio sits at 1,607 issues advancing vs. 1,243 declining with 160 unchanged.

The Telecommunications industry currently sits down 0.3% versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the industry include Telecom Argentina ( TEO), down 7.2%, BT Group ( BT), down 1.1% and Nippon Telegraph & Telephone ( NTT), down 0.9%. Top gainers within the industry include China Unicom (Hong Kong ( CHU), up 1.5%, China Telecom ( CHA), up 1.0%, America Movil S.A.B. de C.V ( AMOV), up 0.9%, AT&T ( T), up 0.8% and Qualcomm ( QCOM), up 0.5%.

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

3. BCE ( BCE) is one of the companies pushing the Telecommunications industry lower today. As of noon trading, BCE is down $0.20 (-0.4%) to $45.04 on light volume Thus far, 213,086 shares of BCE exchanged hands as compared to its average daily volume of 869,500 shares. The stock has ranged in price between $44.79-$45.22 after having opened the day at $45.06 as compared to the previous trading day's close of $45.24.

BCE Inc. provides wire line, wireless, Internet, and television (TV) services to residential, business, and wholesale customers primarily in Canada. BCE has a market cap of $34.5 billion and is part of the technology sector. The company has a P/E ratio of 13.9, below the S&P 500 P/E ratio of 17.7. Shares are up 3.6% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate BCE a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates BCE as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full BCE Ratings Report now.

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2. As of noon trading, Ericsson Telephone Company ( ERIC) is down $0.13 (-1.0%) to $12.28 on average volume Thus far, 2.0 million shares of Ericsson Telephone Company exchanged hands as compared to its average daily volume of 4.7 million shares. The stock has ranged in price between $12.20-$12.33 after having opened the day at $12.29 as compared to the previous trading day's close of $12.41.

Ericsson provides communications equipment, professional services, and multimedia solutions to mobile and fixed networks operators worldwide. Ericsson Telephone Company has a market cap of $39.5 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 up 21.4% year to date as of the close of trading on Wednesday. Currently there are 5 analysts that rate Ericsson Telephone Company a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Ericsson Telephone 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, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Ericsson Telephone Company Ratings Report now.

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1. As of noon trading, Nokia Oyj ( NOK) is down $0.11 (-2.9%) to $3.66 on average volume Thus far, 32.6 million shares of Nokia Oyj exchanged hands as compared to its average daily volume of 61.9 million shares. The stock has ranged in price between $3.64-$3.72 after having opened the day at $3.64 as compared to the previous trading day's close of $3.77.

Nokia Corporation provides telecommunications infrastructure hardware, software, and services worldwide. The company offers smart phones and smart devices; and feature phones, and related services and applications. Nokia Oyj has a market cap of $13.4 billion and is part of the technology sector. Shares are down 4.6% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate Nokia Oyj a buy, 10 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Nokia Oyj as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself. Get the full Nokia Oyj Ratings Report now.

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If you are interested in one of these 3 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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