5 Stocks Pulling 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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 84 points (0.6%) at 15,176 as of Tuesday, May 14, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 2,014 issues advancing vs. 928 declining with 109 unchanged.

The Telecommunications industry currently sits up 0.3% versus the S&P 500, which is up 0.9%. On the negative front, top decliners within the industry include Nokia Oyj ( NOK), down 5.73, Portugal Telecom ( PT), down 5.14, Telecom Italia SpA ( TI.A), down 2.22 and America Movil S.A.B. de C.V ( AMOV), down 0.85. Top gainers within the industry include China Telecom ( CHA), up 1.9%, Nippon Telegraph & Telephone ( NTT), up 1.4%, BT Group ( BT), up 1.3% and American Tower ( AMT), up 0.9%.

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

5. Siemens ( SI) is one of the companies pushing the Telecommunications industry lower today. As of noon trading, Siemens is down $0.67 (-0.6%) to $105.58 on light volume Thus far, 105,890 shares of Siemens exchanged hands as compared to its average daily volume of 343,700 shares. The stock has ranged in price between $105.22-$105.75 after having opened the day at $105.22 as compared to the previous trading day's close of $106.25.

Siemens Aktiengesellschaft, an electronics and electrical engineering company, operates in the energy, healthcare, industry, and infrastructure and cities sectors worldwide. Siemens has a market cap of $90.0 billion and is part of the industrial goods sector. The company has a P/E ratio of 32.1, above the S&P 500 P/E ratio of 17.7. Shares are down 2.9% year to date as of the close of trading on Monday.

TheStreet Ratings rates Siemens as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Siemens Ratings Report now.

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4. As of noon trading, LM Ericsson Telephone Company ( ERIC) is down $0.07 (-0.6%) to $12.32 on light volume Thus far, 944,452 shares of LM Ericsson Telephone Company exchanged hands as compared to its average daily volume of 4.4 million shares. The stock has ranged in price between $12.28-$12.34 after having opened the day at $12.32 as compared to the previous trading day's close of $12.39.

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 $41.1 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 23.2% year to date as of the close of trading on Monday.

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.

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3. As of noon trading, America Movil S.A.B. de C.V ( AMX) is down $0.11 (-0.5%) to $20.99 on light volume Thus far, 1.5 million shares of America Movil S.A.B. de C.V exchanged hands as compared to its average daily volume of 11.3 million shares. The stock has ranged in price between $20.95-$21.18 after having opened the day at $21.10 as compared to the previous trading day's close of $21.10.

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 $80.0 billion and is part of the technology sector. The company has a P/E ratio of 11.7, below the S&P 500 P/E ratio of 17.7. Shares are down 8.8% year to date as of the close of trading on Monday.

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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2. As of noon trading, Research in Motion ( BBRY) is down $0.70 (-4.4%) to $15.18 on heavy volume Thus far, 37.3 million shares of Research in Motion exchanged hands as compared to its average daily volume of 45.1 million shares. The stock has ranged in price between $14.92-$16.14 after having opened the day at $16.01 as compared to the previous trading day's close of $15.88.

Research In Motion Limited, doing business as BlackBerry, engages in the design, manufacture, and marketing of wireless solutions worldwide. Research in Motion has a market cap of $8.1 billion and is part of the technology sector. Shares are up 30.9% year to date as of the close of trading on Monday.

TheStreet Ratings rates Research in Motion as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and weak operating cash flow. Get the full Research in Motion Ratings Report now.

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1. As of noon trading, Research in Motion ( RIMM) is down $0.69 (-4.3%) to $15.19 on average volume Thus far, 37.3 million shares of Research in Motion exchanged hands as compared to its average daily volume of 54.8 million shares. The stock has ranged in price between $14.92-$16.14 after having opened the day at $16.01 as compared to the previous trading day's close of $15.88.

Research In Motion Limited designs, manufactures, and markets wireless solutions for the mobile communications market worldwide. Research in Motion has a market cap of $6.8 billion and is part of the technology sector. Shares are up 9.4% year to date as of the close of trading on Monday.

TheStreet Ratings rates Research in Motion as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and poor profit margins. Get the full Research in Motion 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 4 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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