4 Stocks Dragging In The Telecommunications Industry

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 79 points (0.6%) at 14,527 as of Tuesday, March 26, 2013, 12:49 PM ET. The NYSE advances/declines ratio sits at 1,808 issues advancing vs. 1,104 declining with 127 unchanged.

The Telecommunications industry currently sits down 0.1% versus the S&P 500, which is up 0.4%. On the negative front, top decliners within the industry include Telecom Italia SpA ( TI), down 5.6%, Telecom Italia SpA ADR ( TI.A), down 4.4% and BT Group ( BT), down 1.2%. Top gainers within the industry include Tim Holding Company ( TSU), up 4.0%, America Movil S.A.B. de C.V ( AMX), up 1.5% and America Movil S.A.B. de C.V ( AMOV), up 1.2%.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry lower today:

4. NTT DoCoMo ( DCM) is one of the companies pushing the Telecommunications industry lower today. As of noon trading, NTT DoCoMo is down $0.34 (-2.2%) to $15.36 on average volume Thus far, 167,614 shares of NTT DoCoMo exchanged hands as compared to its average daily volume of 396,100 shares. The stock has ranged in price between $15.34-$15.45 after having opened the day at $15.38 as compared to the previous trading day's close of $15.70.

NTT DOCOMO, INC. provides mobile telephone services over its long term evolution and W-CDMA networks. NTT DoCoMo has a market cap of $65.4 billion and is part of the technology sector. The company has a P/E ratio of 14.0, below the S&P 500 P/E ratio of 17.7. Shares are up 9.0% year to date as of the close of trading on Monday. Currently there are no analysts that rate NTT DoCoMo a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates NTT DoCoMo as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Get the full NTT DoCoMo Ratings Report now.

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3. As of noon trading, Nippon Telegraph & Telephone ( NTT) is down $0.36 (-1.6%) to $21.82 on light volume Thus far, 143,925 shares of Nippon Telegraph & Telephone exchanged hands as compared to its average daily volume of 687,300 shares. The stock has ranged in price between $21.81-$21.87 after having opened the day at $21.84 as compared to the previous trading day's close of $22.18.

Nippon Telegraph and Telephone Corporation, together with its subsidiaries, provides fixed and mobile voice related services, IP/packet communications services, telecommunications equipment, and system integration and other telecommunications-related services in Japan. Nippon Telegraph & Telephone has a market cap of $53.2 billion and is part of the technology sector. The company has a P/E ratio of 10.8, below the S&P 500 P/E ratio of 17.7. Shares are up 5.5% year to date as of the close of trading on Monday. Currently there are 2 analysts that rate Nippon Telegraph & Telephone a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Nippon Telegraph & Telephone as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Nippon Telegraph & Telephone Ratings Report now.

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2. As of noon trading, Telefonica ( TEF) is down $0.32 (-2.3%) to $13.72 on heavy volume Thus far, 4.6 million shares of Telefonica exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $13.67-$13.86 after having opened the day at $13.76 as compared to the previous trading day's close of $14.04.

Telefonica, S.A. provides fixed and mobile telephony services primarily in Spain, Latin America, and rest of Europe. Telefonica has a market cap of $66.6 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 4.1% year to date as of the close of trading on Monday. 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 and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and poor profit margins. Get the full Telefonica Ratings Report now.

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1. As of noon trading, Siemens ( SI) is down $1.57 (-1.4%) to $109.74 on average volume Thus far, 204,451 shares of Siemens exchanged hands as compared to its average daily volume of 288,500 shares. The stock has ranged in price between $109.38-$110.81 after having opened the day at $110.50 as compared to the previous trading day's close of $111.31.

Siemens Aktiengesellschaft, an electronics and electrical engineering company, operates in the energy, healthcare, industry, and infrastructure and cities sectors worldwide. Siemens has a market cap of $94.7 billion and is part of the industrial goods sector. The company has a P/E ratio of 32.1, above the S&P 500 P/E ratio of 17.7. Shares are up 1.7% year to date as of the close of trading on Monday. Currently there are 2 analysts that rate Siemens a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Siemens as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Siemens 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 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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