5 Stocks Pushing The Telecommunications Industry Downward

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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 22 points (-0.2%) at 14,556 as of Monday, April 1, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 762 issues advancing vs. 2,184 declining with 121 unchanged.

The Telecommunications industry currently sits down 1.0% versus the S&P 500, which is down 0.6%. On the negative front, top decliners within the industry include P.T. Telekomunikasi Indonesia Tbk ( TLK), down 2.3%, China Telecom ( CHA), down 1.5%, China Unicom (Hong Kong ( CHU), down 1.2% and NTT DoCoMo ( DCM), down 0.7%.

TheStreet Ratings group would like to highlight 5 stocks pushing the industry lower today:

5. Nippon Telegraph & Telephone ( NTT) is one of the companies pushing the Telecommunications industry lower today. As of noon trading, Nippon Telegraph & Telephone is down $0.55 (-2.5%) to $21.19 on light volume Thus far, 190,394 shares of Nippon Telegraph & Telephone exchanged hands as compared to its average daily volume of 702,000 shares. The stock has ranged in price between $21.14-$21.65 after having opened the day at $21.65 as compared to the previous trading day's close of $21.74.

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 $52.1 billion and is part of the technology sector. The company has a P/E ratio of 10.6, below the S&P 500 P/E ratio of 17.7. Shares are up 3.4% year to date as of the close of trading on Thursday. 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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4. As of noon trading, Telefonica ( TEF) is down $0.10 (-0.7%) to $13.41 on light volume Thus far, 483,633 shares of Telefonica exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $13.38-$13.52 after having opened the day at $13.50 as compared to the previous trading day's close of $13.51.

Telefonica, S.A. provides fixed and mobile communication services primarily in Europe and Latin America. Telefonica has a market cap of $61.5 billion and is part of the technology sector. Shares are up 0.1% year to date as of the close of trading on Thursday. 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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3. As of noon trading, Telefonica Brasil S.A ( VIV) is down $0.33 (-1.2%) to $26.35 on light volume Thus far, 402,278 shares of Telefonica Brasil S.A exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $26.35-$26.77 after having opened the day at $26.60 as compared to the previous trading day's close of $26.68.

Telefonica Brasil S.A. provides fixed-line telecommunications services to residential and commercial customers in Brazil. Telefonica Brasil S.A has a market cap of $30.0 billion and is part of the technology sector. The company has a P/E ratio of 6.5, below the S&P 500 P/E ratio of 17.7. Shares are up 10.8% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate Telefonica Brasil S.A a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates Telefonica Brasil S.A 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 and attractive valuation levels. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Get the full Telefonica Brasil S.A Ratings Report now.

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2. As of noon trading, Ericsson Telephone Company ( ERIC) is down $0.14 (-1.1%) to $12.46 on light volume Thus far, 1.3 million shares of Ericsson Telephone Company exchanged hands as compared to its average daily volume of 5.4 million shares. The stock has ranged in price between $12.43-$12.60 after having opened the day at $12.55 as compared to the previous trading day's close of $12.60.

Ericsson provides telecommunications equipment and services to mobile and fixed network operators worldwide. It operates in four segments: Networks, Global Services, Support Solutions, and ST-Ericsson. Ericsson Telephone Company has a market cap of $40.6 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 24.8% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate Ericsson Telephone Company a buy, 1 analyst rates it a sell, and 5 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, Qualcomm ( QCOM) is down $0.72 (-1.1%) to $66.22 on average volume Thus far, 4.4 million shares of Qualcomm exchanged hands as compared to its average daily volume of 11.6 million shares. The stock has ranged in price between $66.13-$66.84 after having opened the day at $66.70 as compared to the previous trading day's close of $66.94.

QUALCOMM Incorporated designs, develops, manufactures, and markets digital telecommunications products and services. It operates in four segments: QCT, QTL, QWI, and QSI. Qualcomm has a market cap of $115.0 billion and is part of the technology sector. The company has a P/E ratio of 20.0, above the S&P 500 P/E ratio of 17.7. Shares are up 8.2% year to date as of the close of trading on Thursday. Currently there are 24 analysts that rate Qualcomm a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Qualcomm 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Qualcomm Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

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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