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

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 30 points (-0.2%) at 15,089 as of Monday, May 13, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,245 issues advancing vs. 1,704 declining with 112 unchanged.

The Telecommunications industry currently sits up 0.6% versus the S&P 500, which is unchanged. A company within the industry that fell today was China Telecom ( CHA), up 1.84.

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 $0.74 (-1.6%) to $46.77 on average volume Thus far, 96,057 shares of BT Group exchanged hands as compared to its average daily volume of 146,400 shares. The stock has ranged in price between $46.57-$47.01 after having opened the day at $46.59 as compared to the previous trading day's close of $47.51.

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 $34.6 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 11.6% year to date as of the close of trading on Friday.

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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4. As of noon trading, Nippon Telegraph & Telephone ( NTT) is down $0.24 (-0.9%) to $25.83 on average volume Thus far, 417,584 shares of Nippon Telegraph & Telephone exchanged hands as compared to its average daily volume of 634,400 shares. The stock has ranged in price between $25.83-$26.11 after having opened the day at $26.07 as compared to the previous trading day's close of $26.07.

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 $60.4 billion and is part of the technology sector. The company has a P/E ratio of 12.3, below the S&P 500 P/E ratio of 17.7. Shares are up 19.9% year to date as of the close of trading on Friday.

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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3. As of noon trading, Telefonica ( TEF) is down $0.22 (-1.5%) to $14.16 on light volume Thus far, 576,391 shares of Telefonica exchanged hands as compared to its average daily volume of 2.1 million shares. The stock has ranged in price between $14.16-$14.29 after having opened the day at $14.24 as compared to the previous trading day's close of $14.38.

Telefonica, S.A. provides fixed and mobile communication services primarily in Europe and Latin America. Telefonica has a market cap of $65.5 billion and is part of the technology sector. Shares are up 6.6% year to date as of the close of trading on Friday.

TheStreet Ratings rates Telefonica as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and poor profit margins. Get the full Telefonica Ratings Report now.

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2. As of noon trading, Sprint Nextel ( S) is down $0.12 (-1.6%) to $7.24 on light volume Thus far, 17.3 million shares of Sprint Nextel exchanged hands as compared to its average daily volume of 47.4 million shares. The stock has ranged in price between $7.24-$7.33 after having opened the day at $7.32 as compared to the previous trading day's close of $7.36.

Sprint Nextel Corporation, through its subsidiaries, offers a range of wireless and wireline communications products and services to individual consumers, businesses, government subscribers, and resellers in the United States, Puerto Rico, and the U.S. Virgin Islands. Sprint Nextel has a market cap of $22.2 billion and is part of the technology sector. Shares are up 29.8% year to date as of the close of trading on Friday.

TheStreet Ratings rates Sprint Nextel as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk. Get the full Sprint Nextel Ratings Report now.

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1. As of noon trading, AT&T ( T) is down $0.29 (-0.8%) to $37.07 on light volume Thus far, 7.2 million shares of AT&T exchanged hands as compared to its average daily volume of 25.4 million shares. The stock has ranged in price between $37.06-$37.32 after having opened the day at $37.32 as compared to the previous trading day's close of $37.36.

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 $200.8 billion and is part of the technology sector. The company has a P/E ratio of 28.3, above the S&P 500 P/E ratio of 17.7. Shares are up 10.8% year to date as of the close of trading on Friday.

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 5 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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