Telecommunications Stocks On The Rise With Help From 3 Stocks

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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 14 points (-0.1%) at 15,098 as of Friday, Aug. 16, 2013, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,393 issues advancing vs. 1,555 declining with 92 unchanged.

The Telecommunications industry currently sits up 8.9% versus the S&P 500, which is down 0.1%. Top gainers within the industry include Voltari ( VLTC), up 1517.8%, Telecom Italia SpA ( TI.A), up 2.5%, Telecom Italia SpA ( TI), up 2.0% and China Telecom ( CHA), up 0.9%. On the negative front, top decliners within the industry include America Movil S.A.B. de C.V ( AMOV), down 1.2%, and NTT DoCoMo ( DCM), down 0.7%.

TheStreet would like to highlight 3 stocks pushing the industry higher today:

3. Telefonica ( TEF) is one of the companies pushing the Telecommunications industry higher today. As of noon trading, Telefonica is up $0.20 (1.4%) to $14.65 on average volume. Thus far, 627,415 shares of Telefonica exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $14.49-$14.66 after having opened the day at $14.51 as compared to the previous trading day's close of $14.45.

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 $65.5 billion and is part of the technology sector. Shares are up 7.1% year to date as of the close of trading on Thursday. Currently there are 2 analysts that rate Telefonica a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Telefonica as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins. Get the full Telefonica Ratings Report now.

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2. As of noon trading, SK Telecom ( SKM) is up $0.49 (2.4%) to $21.29 on light volume. Thus far, 214,185 shares of SK Telecom exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $21.16-$21.33 after having opened the day at $21.25 as compared to the previous trading day's close of $20.80.

SK Telecom Co., Ltd. provides wireless telecommunications services principally in Korea. SK Telecom has a market cap of $13.2 billion and is part of the technology sector. Shares are up 31.4% year to date as of the close of trading on Thursday. Currently there are 2 analysts that rate SK Telecom a buy, 1 analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates SK Telecom as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full SK Telecom Ratings Report now.

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1. As of noon trading, LM Ericsson Telephone Company ( ERIC) is up $0.14 (1.2%) to $12.23 on light volume. Thus far, 889,452 shares of LM Ericsson Telephone Company exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $12.13-$12.27 after having opened the day at $12.16 as compared to the previous trading day's close of $12.08.

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 $40.8 billion and is part of the technology sector. Shares are up 22.1% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate LM Ericsson Telephone Company a buy, 2 analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates LM Ericsson Telephone Company as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full LM Ericsson Telephone Company Ratings Report now.

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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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