4 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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 62 points (-0.4%) at 15,060 as of Wednesday, June 12, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 760 issues advancing vs. 2,254 declining with 88 unchanged.

The Telecommunications industry currently sits down 0.62 versus the S&P 500, which is down 0.61. On the negative front, top decliners within the industry include China Telecom ( CHA), down 0.94, America Movil S.A.B. de C.V ( AMX), down 0.50 and America Movil S.A.B. de C.V ( AMOV), down 0.50. A company within the industry that increased today was Telefonica ( TEF), up 0.60.

TheStreet Ratings group would like to highlight 4 stocks pushing the industry lower today:

4. TELUS ( TU) is one of the companies pushing the Telecommunications industry lower today. As of noon trading, TELUS is down $0.76 (-2.2%) to $32.90 on average volume Thus far, 91,541 shares of TELUS exchanged hands as compared to its average daily volume of 130,600 shares. The stock has ranged in price between $32.90-$33.83 after having opened the day at $33.79 as compared to the previous trading day's close of $33.66.

TELUS Corporation provides telecommunications products and services primarily in Canada. Its telecommunications products and services include wireless, data, Internet protocol (IP), voice, and television. The company operates through two segments, Wireless and Wireline. TELUS has a market cap of $22.3 billion and is part of the technology sector. The company has a P/E ratio of 16.8, below the S&P 500 P/E ratio of 17.7. Shares are up 6.1% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate TELUS a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates TELUS as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, good cash flow from operations and increase in net income. 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 TELUS Ratings Report now.

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3. As of noon trading, Telefonica Brasil S.A ( VIV) is down $0.60 (-2.4%) to $23.99 on light volume Thus far, 289,572 shares of Telefonica Brasil S.A exchanged hands as compared to its average daily volume of 1.0 million shares. The stock has ranged in price between $23.92-$24.64 after having opened the day at $24.52 as compared to the previous trading day's close of $24.59.

Telefonica Brasil S.A. provides fixed-line telecommunications services to residential and commercial customers in Brazil. Telefonica Brasil S.A has a market cap of $28.5 billion and is part of the technology sector. The company has a P/E ratio of 6.5, below the S&P 500 P/E ratio of 17.7. Shares are up 2.2% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Telefonica Brasil S.A a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Telefonica Brasil S.A 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, increase in stock price during the past year 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 Telefonica Brasil S.A Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, BCE ( BCE) is down $0.63 (-1.4%) to $43.05 on heavy volume Thus far, 576,894 shares of BCE exchanged hands as compared to its average daily volume of 694,100 shares. The stock has ranged in price between $42.97-$44.09 after having opened the day at $44.09 as compared to the previous trading day's close of $43.68.

BCE Inc. provides communications solutions to residential, business, and wholesale customers primarily in Canada. BCE has a market cap of $34.6 billion and is part of the technology sector. The company has a P/E ratio of 13.1, below the S&P 500 P/E ratio of 17.7. Shares are up 3.1% year to date as of the close of trading on Tuesday. Currently there are 3 analysts that rate BCE a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates BCE as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, notable return on equity 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 BCE Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, Qualcomm ( QCOM) is down $0.31 (-0.5%) to $61.35 on average volume Thus far, 7.3 million shares of Qualcomm exchanged hands as compared to its average daily volume of 12.9 million shares. The stock has ranged in price between $61.24-$61.97 after having opened the day at $61.97 as compared to the previous trading day's close of $61.66.

QUALCOMM Incorporated designs, develops, manufactures, and markets digital telecommunications products and services. It operates in four segments: QCT, QTL, QWI, and QSI. Qualcomm has a market cap of $107.2 billion and is part of the technology sector. The company has a P/E ratio of 17.5, below the S&P 500 P/E ratio of 17.7. Shares are up 0.3% year to date as of the close of trading on Tuesday. Currently there are 25 analysts that rate Qualcomm a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Qualcomm as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Qualcomm Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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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