3 Technology Stocks Dragging The Sector Down

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 136 points (0.9%) at 15,938 as of Tuesday, Feb. 11, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 2,190 issues advancing vs. 719 declining with 175 unchanged.

The Technology sector currently sits up 0.5% versus the S&P 500, which is up 0.8%. A company within the sector that fell today was Amazon.com ( AMZN), up 1.1%. Top gainers within the sector include Applied Materials ( AMAT), up 3.2%, CenturyLink ( CTL), up 2.9%, America Movil S.A.B. de C.V ( AMOV), up 2.8%, America Movil S.A.B. de C.V ( AMX), up 2.8% and Sap ( SAP), up 2.4%.

TheStreet would like to highlight 3 stocks pushing the sector lower today:

3. Alcatel-Lucent ( ALU) is one of the companies pushing the Technology sector lower today. As of noon trading, Alcatel-Lucent is down $0.18 (-4.1%) to $4.19 on average volume. Thus far, 7.3 million shares of Alcatel-Lucent exchanged hands as compared to its average daily volume of 13.3 million shares. The stock has ranged in price between $4.17-$4.24 after having opened the day at $4.19 as compared to the previous trading day's close of $4.37.

Alcatel Lucent Societe Anonyme provides Internet protocol (IP) and cloud networking, and ultra-broadband fixed and wireless access to service providers and their customers, enterprises, and institutions worldwide. It operates through three segments: Core Networking, Access, and Other. Alcatel-Lucent has a market cap of $10.2 billion and is part of the telecommunications industry. Shares are down 0.7% year-to-date as of the close of trading on Monday. Currently there are 3 analysts that rate Alcatel-Lucent a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates Alcatel-Lucent as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and generally higher debt management risk. Get the full Alcatel-Lucent 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, Rackspace Hosting ( RAX) is down $6.69 (-16.6%) to $33.67 on heavy volume. Thus far, 10.8 million shares of Rackspace Hosting exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $33.51-$37.30 after having opened the day at $36.00 as compared to the previous trading day's close of $40.36.

Rackspace Hosting, Inc., through its subsidiaries, provides cloud computing services, managing Web-based IT systems for small and medium-sized businesses, and large enterprises worldwide. Rackspace Hosting has a market cap of $5.5 billion and is part of the computer software & services industry. Shares are up 3.1% year-to-date as of the close of trading on Monday. Currently there are 6 analysts that rate Rackspace Hosting a buy, 2 analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates Rackspace Hosting as a hold. 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 and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity. Get the full Rackspace Hosting 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, Qihoo 360 Technology ( QIHU) is down $2.88 (-2.9%) to $95.10 on average volume. Thus far, 1.5 million shares of Qihoo 360 Technology exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $94.32-$100.08 after having opened the day at $99.22 as compared to the previous trading day's close of $97.98.

Qihoo 360 Technology Co. Ltd. provides Internet and mobile security products in the People's Republic of China. Qihoo 360 Technology has a market cap of $11.8 billion and is part of the internet industry. Shares are up 19.4% year-to-date as of the close of trading on Monday. Currently there are 7 analysts that rate Qihoo 360 Technology a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Qihoo 360 Technology as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Get the full Qihoo 360 Technology 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).

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