3 Stocks Advancing 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

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 5 points (0.0%) at 15,100 as of Thursday, May 9, 2013, 12:45 PM ET. The NYSE advances/declines ratio sits at 1,176 issues advancing vs. 1,742 declining with 136 unchanged.

The Telecommunications industry currently sits down 0.39 versus the S&P 500, which is down 0.21. Top gainers within the industry include Research in Motion ( BBRY), up 3.0%, Telecom Italia SpA ( TI), up 3.1%, Nokia Oyj ( NOK), up 2.0% and Mobile Telesystems OJSC ( MBT), up 1.5%. On the negative front, top decliners within the industry include America Movil S.A.B. de C.V ( AMOV), down 1.31, Telefonica ( TEF), down 1.08 and Verizon Communications ( VZ), down 0.45.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry higher today:

3. TELUS ( TU) is one of the companies pushing the Telecommunications industry higher today. As of noon trading, TELUS is up $0.56 (1.53) to $37.19 on average volume Thus far, 60,343 shares of TELUS exchanged hands as compared to its average daily volume of 142,300 shares. The stock has ranged in price between $36.87-$37.48 after having opened the day at $36.87 as compared to the previous trading day's close of $36.63.

TELUS Corporation provides telecommunications products and services primarily in Canada. Its telecommunications products and services include wireless, data, Internet protocol (IP), voice, and television. The company operates through two segments, Wireless and Wireline. TELUS has a market cap of $23.5 billion and is part of the technology sector. The company has a P/E ratio of 16.8, below the S&P 500 P/E ratio of 17.7. Shares are up 6.1% year to date as of the close of trading on Wednesday. Currently there are 7 analysts that rate TELUS a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates TELUS as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, good cash flow from operations and increase in net income. 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 TELUS Ratings Report now.

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2. As of noon trading, Nippon Telegraph & Telephone ( NTT) is up $0.21 (0.84) to $25.26 on light volume Thus far, 185,274 shares of Nippon Telegraph & Telephone exchanged hands as compared to its average daily volume of 637,400 shares. The stock has ranged in price between $25.19-$25.30 after having opened the day at $25.20 as compared to the previous trading day's close of $25.05.

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 $60.6 billion and is part of the technology sector. The company has a P/E ratio of 12.4, below the S&P 500 P/E ratio of 17.7. Shares are up 19.1% year to date as of the close of trading on Wednesday. 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 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 the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Nippon Telegraph & Telephone Ratings Report now.

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1. As of noon trading, CenturyLink ( CTL) is up $0.93 (2.49) to $38.23 on average volume Thus far, 4.1 million shares of CenturyLink exchanged hands as compared to its average daily volume of 7.9 million shares. The stock has ranged in price between $37.60-$38.40 after having opened the day at $38.02 as compared to the previous trading day's close of $37.30.

CenturyLink, Inc. operates as an integrated telecommunications company in the United States. CenturyLink has a market cap of $22.8 billion and is part of the technology sector. The company has a P/E ratio of 24.4, above the S&P 500 P/E ratio of 17.7. Shares are down 4.7% year to date as of the close of trading on Wednesday. Currently there are 9 analysts that rate CenturyLink a buy, 3 analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates CenturyLink as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk. Get the full CenturyLink Ratings Report now.

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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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