3 Stocks Pulling The 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 38 points (0.2%) at 16,236 as of Thursday, Feb. 27, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,761 issues advancing vs. 1,149 declining with 174 unchanged.

The Telecommunications industry currently sits up 0.5% versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the industry include Telecom Italia SpA ( TI), down 3.7%, and Telecom Italia SpA ( TI.A), down 2.7%. Top gainers within the industry include America Movil S.A.B. de C.V ( AMX), up 1.1%, Telekomunikasi Indonesia (Persero) Tbk ( TLK), up 0.7% and America Movil S.A.B. de C.V ( AMOV), up 0.6%.

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

3. Nippon Telegraph & Telephone ( NTT) is one of the companies pushing the Telecommunications industry lower today. As of noon trading, Nippon Telegraph & Telephone is down $0.32 (-1.1%) to $27.96 on light volume. Thus far, 43,402 shares of Nippon Telegraph & Telephone exchanged hands as compared to its average daily volume of 331,500 shares. The stock has ranged in price between $27.87-$27.98 after having opened the day at $27.96 as compared to the previous trading day's close of $28.28.

Nippon Telegraph and Telephone Corporation, together with its subsidiaries, provides fixed and mobile voice related services, IP/packet communications services, telecommunications equipment, and system integration and other telecommunications-related services in Japan. Nippon Telegraph & Telephone has a market cap of $63.9 billion and is part of the technology sector. Shares are up 4.6% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst that rates Nippon Telegraph & Telephone a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Nippon Telegraph & Telephone as a hold. 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. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow. Get the full Nippon Telegraph & 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.

2. As of noon trading, Telefonica ( TEF) is down $0.11 (-0.7%) to $15.37 on heavy volume. Thus far, 856,944 shares of Telefonica exchanged hands as compared to its average daily volume of 1.0 million shares. The stock has ranged in price between $15.19-$15.38 after having opened the day at $15.20 as compared to the previous trading day's close of $15.48.

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 $70.9 billion and is part of the technology sector. Shares are down 5.3% year-to-date as of the close of trading on Wednesday. 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 buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, attractive valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. 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.

1. As of noon trading, LM Ericsson Telephone Company ( ERIC) is down $0.10 (-0.8%) to $12.75 on light volume. Thus far, 1.2 million shares of LM Ericsson Telephone Company exchanged hands as compared to its average daily volume of 4.0 million shares. The stock has ranged in price between $12.74-$12.82 after having opened the day at $12.80 as compared to the previous trading day's close of $12.85.

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 $42.0 billion and is part of the technology sector. Shares are up 3.8% year-to-date as of the close of trading on Wednesday. Currently there are 4 analysts that rate LM Ericsson Telephone Company a buy, 2 analysts rate it a sell, and 2 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 impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full LM Ericsson Telephone Company 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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