PHI, INFY, RHT And HPQ, Pushing Technology Sector 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 81 points (0.5%) at 15,076 as of Thursday, June 13, 2013, 12:55 PM ET. The NYSE advances/declines ratio sits at 2,136 issues advancing vs. 827 declining with 99 unchanged.

The Technology sector currently sits up 0.4% versus the S&P 500, which is up 0.6%. On the negative front, top decliners within the sector include Nippon Telegraph & Telephone ( NTT), down 1.43, Microsoft Corporation ( MSFT), down 0.89, Siemens ( SI), down 0.78, Taiwan Semiconductor Manufacturing ( TSM), down 0.65 and Telefonica ( TEF), down 0.52. Top gainers within the sector include TELUS ( TU), up 3.8%, Tim Holding Company ( TSU), up 3.0%, Altera ( ALTR), up 2.8%, Rogers Communications ( RCI), up 2.3% and Activision Blizzard ( ATVI), up 1.8%.

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

4. Philippine Long Distance Telephone ( PHI) is one of the companies pushing the Technology sector lower today. As of noon trading, Philippine Long Distance Telephone is down $1.45 (-2.1%) to $65.96 on average volume Thus far, 48,681 shares of Philippine Long Distance Telephone exchanged hands as compared to its average daily volume of 126,100 shares. The stock has ranged in price between $64.32-$66.02 after having opened the day at $65.13 as compared to the previous trading day's close of $67.41.

Philippine Long Distance Telephone Company provides telecommunication services in the Philippines. Philippine Long Distance Telephone has a market cap of $14.7 billion and is part of the telecommunications industry. The company has a P/E ratio of 17.4, below the S&P 500 P/E ratio of 17.7. Shares are up 9.9% year to date as of the close of trading on Wednesday. Currently there are no analysts that rate Philippine Long Distance Telephone a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Philippine Long Distance Telephone as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Philippine Long Distance Telephone 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.

3. As of noon trading, Infosys ( INFY) is down $0.32 (-0.8%) to $41.46 on light volume Thus far, 768,492 shares of Infosys exchanged hands as compared to its average daily volume of 2.1 million shares. The stock has ranged in price between $41.15-$41.69 after having opened the day at $41.29 as compared to the previous trading day's close of $41.78.

Infosys Limited provides business consulting, technology, engineering, and outsourcing services worldwide. Infosys has a market cap of $24.3 billion and is part of the computer software & services industry. The company has a P/E ratio of 14.2, below the S&P 500 P/E ratio of 17.7. Shares are down 1.2% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate Infosys a buy, 3 analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Infosys as a hold. 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 and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and disappointing return on equity. Get the full Infosys 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, Red Hat ( RHT) is down $1.19 (-2.6%) to $45.21 on average volume Thus far, 1.3 million shares of Red Hat exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $45.10-$46.34 after having opened the day at $46.23 as compared to the previous trading day's close of $46.40.

Red Hat, Inc. provides open source software solutions primarily to enterprise customers worldwide. The company develops and offers operating system, middleware, virtualization, storage, and cloud technologies. Red Hat has a market cap of $8.8 billion and is part of the computer software & services industry. The company has a P/E ratio of 60.1, above the S&P 500 P/E ratio of 17.7. Shares are down 12.4% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate Red Hat a buy, 1 analyst rates it a sell, and 9 rate it a hold.

TheStreet Ratings rates Red Hat 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, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Red Hat 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, Hewlett-Packard ( HPQ) is down $0.15 (-0.6%) to $24.76 on light volume Thus far, 7.5 million shares of Hewlett-Packard exchanged hands as compared to its average daily volume of 22.1 million shares. The stock has ranged in price between $24.60-$25.28 after having opened the day at $24.77 as compared to the previous trading day's close of $24.91.

Hewlett-Packard Company and its subsidiaries provide products, technologies, software, solutions, and services to individual consumers, small-and medium-sized businesses (SMBs), and large enterprises, including customers in the government, health, and education sectors worldwide. Hewlett-Packard has a market cap of $46.7 billion and is part of the computer hardware industry. Shares are up 74.8% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Hewlett-Packard a buy, 5 analysts rate it a sell, and 16 rate it a hold.

TheStreet Ratings rates Hewlett-Packard as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations 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 disappointing return on equity. Get the full Hewlett-Packard 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 5 stocks, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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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