DCM, NTT And MBT, Pushing 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 153 points (1.0%) at 15,456 as of Tuesday, May 28, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 2,106 issues advancing vs. 846 declining with 109 unchanged.

The Telecommunications industry currently sits up 0.8% versus the S&P 500, which is up 0.9%.

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

3. NTT DoCoMo ( DCM) is one of the companies pushing the Telecommunications industry lower today. As of noon trading, NTT DoCoMo is down $0.40 (-2.6%) to $14.95 on average volume Thus far, 175,134 shares of NTT DoCoMo exchanged hands as compared to its average daily volume of 400,600 shares. The stock has ranged in price between $14.91-$15.02 after having opened the day at $14.96 as compared to the previous trading day's close of $15.35.

NTT DOCOMO, INC. provides mobile telephone services over its long term evolution and W-CDMA networks. NTT DoCoMo has a market cap of $63.7 billion and is part of the technology sector. The company has a P/E ratio of 13.6, below the S&P 500 P/E ratio of 17.7. Shares are up 6.5% year to date as of the close of trading on Friday.

TheStreet Ratings rates NTT DoCoMo as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share. Get the full NTT DoCoMo Ratings Report now.

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2. As of noon trading, Nippon Telegraph & Telephone ( NTT) is down $0.28 (-1.1%) to $25.22 on light volume Thus far, 165,959 shares of Nippon Telegraph & Telephone exchanged hands as compared to its average daily volume of 589,700 shares. The stock has ranged in price between $25.11-$25.33 after having opened the day at $25.18 as compared to the previous trading day's close of $25.50.

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 $61.1 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 21.3% 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 largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, increase in stock price during the past year, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Nippon Telegraph & Telephone Ratings Report now.

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1. As of noon trading, Mobile Telesystems OJSC ( MBT) is down $0.37 (-1.8%) to $19.95 on average volume Thus far, 692,132 shares of Mobile Telesystems OJSC exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $19.94-$20.40 after having opened the day at $20.37 as compared to the previous trading day's close of $20.32.

Mobile TeleSystems OJSC, together with its subsidiaries, provides telecommunications services primarily in the Russian Federation, Ukraine, Uzbekistan, Armenia, and Belarus. Mobile Telesystems OJSC has a market cap of $20.2 billion and is part of the technology sector. The company has a P/E ratio of 19.9, above the S&P 500 P/E ratio of 17.7. Shares are up 9.0% year to date as of the close of trading on Friday.

TheStreet Ratings rates Mobile Telesystems OJSC as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, increase in net income, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Mobile Telesystems OJSC 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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