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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 64 points (0.4%) at 14,866 as of Thursday, April 11, 2013, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,808 issues advancing vs. 1,100 declining with 140 unchanged.

The Telecommunications industry currently sits up 0.1% versus the S&P 500, which is up 0.4%. On the negative front, top decliners within the industry include China Telecom ( CHA), down 1.75, Telefonica Brasil S.A ( VIV), down 1.18 and America Movil S.A.B. de C.V ( AMX), down 0.64. Top gainers within the industry include Telecom Italia SpA ( TI), up 5.6%, Telecom Italia SpA ADR ( TI.A), up 3.9%, BT Group ( BT), up 1.5% and Siemens ( SI), up 0.6%.

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

5. China Unicom (Hong Kong ( CHU) is one of the companies pushing the Telecommunications industry lower today. As of noon trading, China Unicom (Hong Kong is down $0.23 (-1.8%) to $12.85 on light volume Thus far, 264,595 shares of China Unicom (Hong Kong exchanged hands as compared to its average daily volume of 706,000 shares. The stock has ranged in price between $12.81-$12.91 after having opened the day at $12.90 as compared to the previous trading day's close of $13.08.

China Unicom (Hong Kong) Limited, an investment holding company, engages in the provision of GSM and WCDMA cellular, and related telecommunications services primarily in the People's Republic of China. China Unicom (Hong Kong has a market cap of $30.9 billion and is part of the technology sector. The company has a P/E ratio of 46.9, above the S&P 500 P/E ratio of 17.7. Shares are down 19.7% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates China Unicom (Hong Kong as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and reasonable valuation levels. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Get the full China Unicom (Hong Kong Ratings Report now.

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4. As of noon trading, Mobile Telesystems OJSC ( MBT) is down $0.44 (-2.1%) to $20.00 on light volume Thus far, 713,210 shares of Mobile Telesystems OJSC exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $19.96-$20.45 after having opened the day at $20.39 as compared to the previous trading day's close of $20.44.

Mobile TeleSystems OJSC, together with its subsidiaries, provides telecommunications services primarily in the Russian Federation, Ukraine, Uzbekistan, Armenia, and Belarus. Mobile Telesystems OJSC has a market cap of $19.8 billion and is part of the technology sector. The company has a P/E ratio of 13.6, below the S&P 500 P/E ratio of 17.7. Shares are up 9.6% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Mobile Telesystems OJSC 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, increase in net income, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Mobile Telesystems OJSC Ratings Report now.

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3. As of noon trading, Qualcomm ( QCOM) is down $0.36 (-0.5%) to $66.92 on average volume Thus far, 5.6 million shares of Qualcomm exchanged hands as compared to its average daily volume of 11.2 million shares. The stock has ranged in price between $66.62-$67.60 after having opened the day at $67.24 as compared to the previous trading day's close of $67.28.

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 $113.3 billion and is part of the technology sector. The company has a P/E ratio of 19.7, above the S&P 500 P/E ratio of 17.7. Shares are up 6.6% year to date as of the close of trading on Wednesday.

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.

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2. As of noon trading, Research in Motion ( RIMM) is down $0.84 (-5.7%) to $13.85 on average volume Thus far, 36.9 million shares of Research in Motion exchanged hands as compared to its average daily volume of 54.8 million shares. The stock has ranged in price between $13.81-$14.20 after having opened the day at $14.16 as compared to the previous trading day's close of $14.69.

Research In Motion Limited designs, manufactures, and markets wireless solutions for the mobile communications market worldwide. Research in Motion has a market cap of $6.8 billion and is part of the technology sector. Shares are up 9.4% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Research in Motion as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and poor profit margins. Get the full Research in Motion Ratings Report now.

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1. As of noon trading, Research in Motion ( BBRY) is down $0.84 (-5.7%) to $13.85 on average volume Thus far, 37.0 million shares of Research in Motion exchanged hands as compared to its average daily volume of 66.7 million shares. The stock has ranged in price between $13.81-$14.20 after having opened the day at $14.16 as compared to the previous trading day's close of $14.69.

Research In Motion Limited, doing business as BlackBerry, engages in the design, manufacture, and marketing of wireless solutions worldwide. Research in Motion has a market cap of $7.8 billion and is part of the technology sector. Shares are up 25.1% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Research in Motion as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and weak operating cash flow. Get the full Research in Motion 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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