3 Stocks Dragging In 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. 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. 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%.

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

3. BT Group ( BT) is one of the companies pushing the Telecommunications industry lower today. As of noon trading, BT Group is down $1.18 (-2.7%) to $42.70 on average volume Thus far, 77,717 shares of BT Group exchanged hands as compared to its average daily volume of 147,400 shares. The stock has ranged in price between $42.20-$42.91 after having opened the day at $42.88 as compared to the previous trading day's close of $43.88.

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 $35.6 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 15.4% 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, good cash flow from operations, increase in net income 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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2. As of noon trading, America Movil S.A.B. de C.V ( AMX) is down $0.26 (-1.2%) to $21.40 on light volume Thus far, 2.0 million shares of America Movil S.A.B. de C.V exchanged hands as compared to its average daily volume of 11.7 million shares. The stock has ranged in price between $21.33-$21.87 after having opened the day at $21.55 as compared to the previous trading day's close of $21.66.

America Movil, S.A.B. de C.V. provides telecommunications services primarily in the United States, Latin America, and the Caribbean. The company offers mobile and fixed voice services, including airtime, local, long-distance, public telephony, and network interconnection services. America Movil S.A.B. de C.V has a market cap of $82.1 billion and is part of the technology sector. The company has a P/E ratio of 12.0, below the S&P 500 P/E ratio of 17.7. Shares are down 6.4% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates America Movil S.A.B. de C.V as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself. Get the full America Movil S.A.B. de C.V Ratings Report now.

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1. As of noon trading, AT&T ( T) is down $0.44 (-1.2%) to $37.39 on average volume Thus far, 12.5 million shares of AT&T exchanged hands as compared to its average daily volume of 25.6 million shares. The stock has ranged in price between $37.22-$37.78 after having opened the day at $37.70 as compared to the previous trading day's close of $37.83.

AT&T Inc. provides telecommunications services to consumers, businesses, and other providers in the United States and internationally. The company operates in three segments: Wireless, Wireline, and Other. AT&T has a market cap of $201.9 billion and is part of the technology sector. The company has a P/E ratio of 28.4, above the S&P 500 P/E ratio of 17.7. Shares are up 12.2% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates AT&T as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, growth in earnings per share, expanding profit margins, good cash flow from operations 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 AT&T 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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