3 Technology Stocks Dragging The Sector 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 12 points (0.1%) at 15,069 as of Wednesday, May 8, 2013, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,670 issues advancing vs. 1,254 declining with 121 unchanged.

The Technology sector currently sits up 0.3% versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the sector include Symantec ( SYMC), down 3.67, Telecom Italia SpA ( TI.A), down 2.16, Nippon Telegraph & Telephone ( NTT), down 0.87 and Microsoft Corporation ( MSFT), down 0.66. Top gainers within the sector include Electronic Arts ( EA), up 15.5%, STMicroelectronics ( STM), up 5.1%, Cognizant Technology Solutions Corporation ( CTSH), up 4.0%, VimpelCom ( VIP), up 3.8% and Taiwan Semiconductor Manufacturing ( TSM), up 3.5%.

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

3. ValueClick ( VCLK) is one of the companies pushing the Technology sector lower today. As of noon trading, ValueClick is down $5.42 (-17.1%) to $26.32 on heavy volume Thus far, 7.5 million shares of ValueClick exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $25.12-$27.44 after having opened the day at $25.17 as compared to the previous trading day's close of $31.74.

ValueClick, Inc., together with its subsidiaries, offers a suite of products and services that enable marketers to advertise and sell their products and services primarily through online and mobile display advertising, affiliate marketing, and comparison shopping channels. ValueClick has a market cap of $2.4 billion and is part of the internet industry. The company has a P/E ratio of 26.0, above the S&P 500 P/E ratio of 17.7. Shares are up 63.4% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates ValueClick as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. 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 ValueClick Ratings Report now.

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2. As of noon trading, AOL ( AOL) is down $3.57 (-8.6%) to $37.85 on heavy volume Thus far, 2.4 million shares of AOL exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $36.70-$39.73 after having opened the day at $39.24 as compared to the previous trading day's close of $41.42.

AOL Inc., a Web services brand company, offers a suite of online content, products, and services to consumers, advertisers, publishers, and subscribers worldwide. AOL has a market cap of $3.2 billion and is part of the internet industry. The company has a P/E ratio of 3.7, below the S&P 500 P/E ratio of 17.7. Shares are up 39.9% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates AOL as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full AOL Ratings Report now.

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1. As of noon trading, TripAdvisor ( TRIP) is down $1.76 (-3.2%) to $53.25 on heavy volume Thus far, 2.4 million shares of TripAdvisor exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $51.72-$54.57 after having opened the day at $53.34 as compared to the previous trading day's close of $55.01.

TripAdvisor, Inc., an online travel company, provides trip advisory services. TripAdvisor has a market cap of $7.2 billion and is part of the internet industry. The company has a P/E ratio of 40.3, above the S&P 500 P/E ratio of 17.7. Shares are up 31.6% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates TripAdvisor as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and solid stock price performance. 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 TripAdvisor 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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