5 Telecommunications Stocks Dragging The Industry Down

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 115 points (0.8%) at 14,816 as of Thursday, May 2, 2013, 12:55 PM ET. The NYSE advances/declines ratio sits at 2,190 issues advancing vs. 733 declining with 109 unchanged.

The Telecommunications industry currently sits up 0.9% versus the S&P 500, which is up 0.8%. Top gainers within the industry include America Movil S.A.B. de C.V ( AMX), up 2.1%, America Movil S.A.B. de C.V ( AMOV), up 1.9% and Qualcomm ( QCOM), up 1.3%.

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

5. BT Group ( BT) is one of the companies pushing the Telecommunications industry lower today. As of noon trading, BT Group is down $1.01 (-2.3%) to $43.31 on light volume Thus far, 42,716 shares of BT Group exchanged hands as compared to its average daily volume of 145,300 shares. The stock has ranged in price between $43.23-$43.51 after having opened the day at $43.37 as compared to the previous trading day's close of $44.32.

BT Group plc provides communications solutions and services worldwide. It operates in four segments: BT Global Services, BT Retail, BT Wholesale, and Openreach. The BT Global Services segment provides managed networked IT services to large corporate and public sector customers. BT Group has a market cap of $35.1 billion and is part of the technology sector. The company has a P/E ratio of 10.3, below the S&P 500 P/E ratio of 17.7. Shares are up 16.5% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates BT Group as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full BT Group Ratings Report now.

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4. As of noon trading, NTT DoCoMo ( DCM) is down $0.14 (-0.8%) to $16.31 on light volume Thus far, 80,529 shares of NTT DoCoMo exchanged hands as compared to its average daily volume of 411,300 shares. The stock has ranged in price between $16.27-$16.32 after having opened the day at $16.31 as compared to the previous trading day's close of $16.45.

NTT DOCOMO, INC. provides mobile telephone services over its long term evolution and W-CDMA networks. NTT DoCoMo has a market cap of $68.7 billion and is part of the technology sector. The company has a P/E ratio of 14.7, below the S&P 500 P/E ratio of 17.7. Shares are up 14.1% year to date as of the close of trading on Wednesday.

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 $0.42 (-1.7%) to $24.44 on light volume Thus far, 172,165 shares of Nippon Telegraph & Telephone exchanged hands as compared to its average daily volume of 641,000 shares. The stock has ranged in price between $24.30-$24.49 after having opened the day at $24.49 as compared to the previous trading day's close of $24.86.

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 $59.5 billion and is part of the technology sector. The company has a P/E ratio of 12.1, below the S&P 500 P/E ratio of 17.7. Shares are up 18.2% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Nippon Telegraph & Telephone as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Nippon Telegraph & Telephone Ratings Report now.

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2. As of noon trading, VimpelCom ( VIP) is down $0.20 (-1.9%) to $10.72 on average volume Thus far, 572,209 shares of VimpelCom exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $10.70-$10.99 after having opened the day at $10.98 as compared to the previous trading day's close of $10.92.

VimpelCom Ltd., a telecommunications service operator, provides voice and data services through a range of traditional and broadband mobile and fixed technologies. VimpelCom has a market cap of $17.8 billion and is part of the technology sector. The company has a P/E ratio of 8.3, below 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 Wednesday.

TheStreet Ratings rates VimpelCom as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet. Get the full VimpelCom Ratings Report now.

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1. As of noon trading, LM Ericsson Telephone Company ( ERIC) is down $0.21 (-1.7%) to $12.14 on light volume Thus far, 1.5 million shares of LM Ericsson Telephone Company exchanged hands as compared to its average daily volume of 4.7 million shares. The stock has ranged in price between $12.14-$12.24 after having opened the day at $12.21 as compared to the previous trading day's close of $12.35.

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. LM Ericsson Telephone Company has a market cap of $40.7 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 22.3% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates LM 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 LM Ericsson Telephone Company 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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