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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