KT, TEF, BCE, ERIC And S, Pushing Telecommunications Industry Downward

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 15 points (0.1%) at 15,467 as of Wednesday, July 17, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,986 issues advancing vs. 913 declining with 127 unchanged.

The Telecommunications industry currently sits up 0.2% versus the S&P 500, which is up 0.3%. On the negative front, top decliners within the industry include American Tower ( AMT), down 1.1%, BT Group ( BT), down 0.9% and NTT DoCoMo ( DCM), down 0.8%. Top gainers within the industry include Qualcomm ( QCOM), up 1.1%, Siemens ( SI), up 0.7% and America Movil S.A.B. de C.V ( AMOV), up 0.6%.

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

5. KT Corporation ( KT) is one of the companies pushing the Telecommunications industry lower today. As of noon trading, KT Corporation is down $0.55 (-3.5%) to $15.02 on average volume. Thus far, 332,573 shares of KT Corporation exchanged hands as compared to its average daily volume of 498,700 shares. The stock has ranged in price between $14.98-$15.17 after having opened the day at $15.14 as compared to the previous trading day's close of $15.57.

KT Corporation provides telecommunication services in Korea. KT Corporation has a market cap of $8.2 billion and is part of the technology sector. Shares are down 7.0% year to date as of the close of trading on Tuesday. Currently there are no analysts that rate KT Corporation a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates KT Corporation 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, poor profit margins and disappointing return on equity. Get the full KT Corporation 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.

4. As of noon trading, Telefonica ( TEF) is down $0.14 (-1.0%) to $12.80 on heavy volume. Thus far, 1.2 million shares of Telefonica exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $12.73-$12.92 after having opened the day at $12.92 as compared to the previous trading day's close of $12.94.

Telefonica, S.A. provides fixed and mobile communication services primarily in Europe and Latin America. The company offers mobile voice, value added, mobile data and Internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services, as well as mobile payment solutions. Telefonica has a market cap of $59.2 billion and is part of the technology sector. Shares are down 4.1% year to date as of the close of trading on Tuesday. Currently there are 2 analysts that rate Telefonica a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Telefonica as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, increase in stock price during the past year and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins. Get the full Telefonica 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, BCE ( BCE) is down $0.40 (-0.9%) to $41.86 on average volume. Thus far, 575,381 shares of BCE exchanged hands as compared to its average daily volume of 855,000 shares. The stock has ranged in price between $41.58-$42.49 after having opened the day at $42.27 as compared to the previous trading day's close of $42.26.

BCE Inc. provides communications solutions to residential, business, and wholesale customers primarily in Canada. BCE has a market cap of $32.9 billion and is part of the technology sector. Shares are down 1.6% year to date as of the close of trading on Tuesday. Currently there are 4 analysts that rate BCE a buy, no analysts rate it a sell, and 8 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, revenue growth, notable return on equity, expanding profit margins and increase in net income. 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.

2. As of noon trading, LM Ericsson Telephone Company ADR Class B ( ERIC) is down $0.15 (-1.2%) to $12.11 on heavy volume. Thus far, 3.5 million shares of LM Ericsson Telephone Company ADR Class B exchanged hands as compared to its average daily volume of 3.2 million shares. The stock has ranged in price between $12.06-$12.25 after having opened the day at $12.24 as compared to the previous trading day's close of $12.26.

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 ADR Class B has a market cap of $40.5 billion and is part of the technology sector. Shares are up 21.4% year to date as of the close of trading on Tuesday. Currently there are 5 analysts that rate LM Ericsson Telephone Company ADR Class B a buy, 2 analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates LM Ericsson Telephone Company ADR Class B as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, 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 LM Ericsson Telephone Company ADR Class B 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, Sprint ( S) is down $0.24 (-3.7%) to $6.24 on heavy volume. Thus far, 40.8 million shares of Sprint exchanged hands as compared to its average daily volume of 17.0 million shares. The stock has ranged in price between $6.20-$6.48 after having opened the day at $6.46 as compared to the previous trading day's close of $6.48.

Sprint Nextel Corporation, through its subsidiaries, offers a range of wireless and wireline communications products and services to individual consumers, businesses, government subscribers, and resellers in the United States, Puerto Rico, and the U.S. Virgin Islands. Sprint has a market cap of $19.2 billion and is part of the technology sector. Shares are up 26.6% year to date as of the close of trading on Tuesday. Currently there are 2 analysts that rate Sprint a buy, 2 analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Sprint as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk. Get the full Sprint 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).

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