3 Stocks Pushing The Telecommunications Industry Higher

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 42 points (0.3%) at 14,338 as of Thursday, March 7, 2013, 11:50 AM ET. The NYSE advances/declines ratio sits at 1,674 issues advancing vs. 1,197 declining with 153 unchanged.

The Telecommunications industry currently sits up 0.5% versus the S&P 500, which is up 0.2%. Top gainers within the industry include Telecom Italia SpA ADR ( TI.A), up 4.3%, Telecom Italia SpA ( TI), up 3.4% and Siemens ( SI), up 1.0%. On the negative front, top decliners within the industry include BT Group ( BT), down 0.8%, and NTT DoCoMo ( DCM), down 0.5%.

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

3. Telefonica ( TEF) is one of the companies pushing the Telecommunications industry higher today. As of noon trading, Telefonica is up $0.25 (1.8%) to $14.02 on average volume Thus far, 957,196 shares of Telefonica exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $13.99-$14.17 after having opened the day at $14.02 as compared to the previous trading day's close of $13.77.

Telefonica, S.A. provides fixed and mobile telephony services primarily in Spain, Latin America, and rest of Europe. Telefonica has a market cap of $62.3 billion and is part of the technology sector. The company has a P/E ratio of 57.4, above the S&P 500 P/E ratio of 17.7. Shares are up 2.1% year to date as of the close of trading on Wednesday. Currently there is 1 analyst that rates Telefonica a buy, 2 analysts rate it a sell, and 3 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 compelling growth in net income. 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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2. As of noon trading, Level 3 Communications ( LVLT) is up $1.53 (7.5%) to $21.92 on heavy volume Thus far, 2.5 million shares of Level 3 Communications exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $20.68-$22.24 after having opened the day at $20.74 as compared to the previous trading day's close of $20.39.

Level 3 Communications, Inc., together with its subsidiaries, operates as a facilities-based provider of a range of communications services primarily in North America, Europe, and rest of Latin America. It operates through two segments, Level 3 and Global Crossing. Level 3 Communications has a market cap of $4.4 billion and is part of the technology sector. Shares are down 11.8% year to date as of the close of trading on Wednesday. Currently there are 5 analysts that rate Level 3 Communications a buy, 1 analyst rates it a sell, and 8 rate it a hold.

TheStreet Ratings rates Level 3 Communications as a hold. The company's strengths can be seen in multiple areas, such as its 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 generally higher debt management risk and a generally disappointing performance in the stock itself. Get the full Level 3 Communications Ratings Report now.

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1. As of noon trading, Ericsson Telephone Company ( ERIC) is up $0.42 (3.4%) to $12.94 on average volume Thus far, 2.3 million shares of Ericsson Telephone Company exchanged hands as compared to its average daily volume of 4.8 million shares. The stock has ranged in price between $12.94-$13.08 after having opened the day at $12.99 as compared to the previous trading day's close of $12.52.

Ericsson provides communications equipment, professional services, and multimedia solutions to mobile and fixed networks operators worldwide. Ericsson Telephone Company has a market cap of $41.3 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 26.8% 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 6 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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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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