3 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 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 Technology sector currently sits up 0.4% versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the sector include Nippon Telegraph & Telephone ( NTT), down 1.8%, CenturyLink ( CTL), down 1.7%, P.T. Telekomunikasi Indonesia Tbk ( TLK), down 1.3%, Rogers Communications ( RCI), down 1.4% and ASML ( ASML), down 1.1%. Top gainers within the sector include Ciena Corporation ( CIEN), up 15.3%, Level 3 Communications ( LVLT), up 7.5%, JDS Uniphase Corp (CA ( JDSU), up 6.5%, Telecom Italia SpA ADR ( TI.A), up 4.3% and Telecom Italia SpA ( TI), up 3.4%.

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

3. Western Digital Corporation ( WDC) is one of the companies pushing the Technology sector lower today. As of noon trading, Western Digital Corporation is down $1.11 (-2.3%) to $47.72 on average volume Thus far, 1.5 million shares of Western Digital Corporation exchanged hands as compared to its average daily volume of 3.8 million shares. The stock has ranged in price between $47.47-$48.80 after having opened the day at $48.75 as compared to the previous trading day's close of $48.83.

Western Digital Corporation, through its subsidiaries, engages in the development, manufacture, and sale of storage products that enable people to create, manage, experience, and preserve digital content. The company principally offers hard drives comprising 3.5-inch and 2.5-inch form factors. Western Digital Corporation has a market cap of $11.6 billion and is part of the computer hardware industry. The company has a P/E ratio of 5.8, below the S&P 500 P/E ratio of 17.7. Shares are up 14.9% year to date as of the close of trading on Wednesday. Currently there are 8 analysts that rate Western Digital Corporation a buy, 1 analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Western Digital Corporation as a buy. 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Western Digital Corporation Ratings Report now.

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2. As of noon trading, Seagate Technology ( STX) is down $0.76 (-2.3%) to $32.26 on light volume Thus far, 2.2 million shares of Seagate Technology exchanged hands as compared to its average daily volume of 7.5 million shares. The stock has ranged in price between $31.94-$33.20 after having opened the day at $33.18 as compared to the previous trading day's close of $33.02.

Seagate Technology Public Limited Company designs, manufactures, markets, and sells hard disk drives for enterprise storage, client compute, and client non-compute market applications worldwide. Seagate Technology has a market cap of $11.6 billion and is part of the computer hardware industry. The company has a P/E ratio of 4.2, below the S&P 500 P/E ratio of 17.7. Shares are up 8.5% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate Seagate Technology a buy, 3 analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates Seagate Technology as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, notable return on equity, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Seagate Technology Ratings Report now.

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1. As of noon trading, EMC Corporation ( EMC) is down $0.25 (-1.0%) to $24.05 on average volume Thus far, 11.5 million shares of EMC Corporation exchanged hands as compared to its average daily volume of 23.5 million shares. The stock has ranged in price between $24.04-$24.41 after having opened the day at $24.31 as compared to the previous trading day's close of $24.30.

EMC Corporation develops, delivers, and supports the information and virtual infrastructure technologies and solutions. EMC Corporation has a market cap of $50.0 billion and is part of the computer hardware industry. The company has a P/E ratio of 19.3, above the S&P 500 P/E ratio of 17.7. Shares are down 4.0% year to date as of the close of trading on Wednesday. Currently there are 25 analysts that rate EMC Corporation a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates EMC Corporation as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, growth in earnings per share, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full EMC Corporation Ratings Report now.

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If you are interested in one of these 5 stocks, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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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