5 Telecommunications Stocks Dragging The Industry 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

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 14 points (0.1%) at 15,368 as of Monday, May 20, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,885 issues advancing vs. 1,048 declining with 118 unchanged.

The Telecommunications industry currently sits up 0.4% versus the S&P 500, which is up 0.1%. A company within the industry that fell today was America Movil S.A.B. de C.V ( AMOV), up 1.02. Top gainers within the industry include BT Group ( BT), up 2.5%, Telekomunikasi Indonesia (Persero) Tbk ( TLK), up 1.9%, Telecom Italia SpA ( TI), up 1.2%, China Telecom ( CHA), up 1.1% and NTT DoCoMo ( DCM), up 0.8%.

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

5. Nippon Telegraph & Telephone ( NTT) is one of the companies pushing the Telecommunications industry lower today. As of noon trading, Nippon Telegraph & Telephone is down $0.17 (-0.6%) to $26.20 on average volume Thus far, 247,882 shares of Nippon Telegraph & Telephone exchanged hands as compared to its average daily volume of 623,700 shares. The stock has ranged in price between $26.06-$26.22 after having opened the day at $26.20 as compared to the previous trading day's close of $26.37.

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 $63.7 billion and is part of the technology sector. The company has a P/E ratio of 13.0, below the S&P 500 P/E ratio of 17.7. Shares are up 25.4% 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 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 Nippon Telegraph & Telephone Ratings Report now.

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4. As of noon trading, Telefonica ( TEF) is down $0.16 (-1.1%) to $14.24 on light volume Thus far, 644,915 shares of Telefonica exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $14.10-$14.27 after having opened the day at $14.14 as compared to the previous trading day's close of $14.40.

Telefonica, S.A. provides fixed and mobile communication services primarily in Europe and Latin America. Telefonica has a market cap of $64.9 billion and is part of the technology sector. Shares are up 6.7% 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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3. As of noon trading, LM Ericsson Telephone Company ( ERIC) is down $0.08 (-0.7%) to $11.90 on average volume Thus far, 2.4 million shares of LM Ericsson Telephone Company exchanged hands as compared to its average daily volume of 4.2 million shares. The stock has ranged in price between $11.86-$11.97 after having opened the day at $11.91 as compared to the previous trading day's close of $11.98.

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 $40.0 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 19.9% year to date as of the close of trading on Friday.

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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2. As of noon trading, Crown Castle International ( CCI) is down $0.75 (-1.0%) to $77.12 on heavy volume Thus far, 1.4 million shares of Crown Castle International exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $77.07-$78.54 after having opened the day at $78.10 as compared to the previous trading day's close of $77.87.

Crown Castle International Corp., together with is subsidiaries, owns, operates, and leases shared wireless infrastructure primarily in the United States, Puerto Rico, and Australia. Crown Castle International has a market cap of $22.8 billion and is part of the technology sector. The company has a P/E ratio of 149.6, above the S&P 500 P/E ratio of 17.7. Shares are up 7.9% year to date as of the close of trading on Friday.

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

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1. As of noon trading, America Movil S.A.B. de C.V ( AMX) is down $0.14 (-0.7%) to $20.55 on light volume Thus far, 2.4 million shares of America Movil S.A.B. de C.V exchanged hands as compared to its average daily volume of 10.7 million shares. The stock has ranged in price between $20.38-$20.83 after having opened the day at $20.69 as compared to the previous trading day's close of $20.69.

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 $79.0 billion and is part of the technology sector. The company has a P/E ratio of 11.6, below the S&P 500 P/E ratio of 17.7. Shares are down 10.6% year to date as of the close of trading on Friday.

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.

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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3 Stocks Pulling The Telecommunications Industry Downward

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