3 Stocks Pushing The Telecommunications Industry Lower

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.

The Telecommunications industry as a whole closed the day down 1.2% versus the S&P 500, which was up 0.6%. Laggards within the Telecommunications industry included Technical Communications ( TCCO), down 2.4%, Otelco ( OTEL), down 1.7%, RELM Wireless ( RWC), down 2.1%, Glowpoint ( GLOW), down 3.4% and I D Systems ( IDSY), down 4.8%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

I D Systems ( IDSY) is one of the companies that pushed the Telecommunications industry lower today. I D Systems was down $0.25 (4.8%) to $4.99 on light volume. Throughout the day, 12,007 shares of I D Systems exchanged hands as compared to its average daily volume of 25,100 shares. The stock ranged in price between $4.89-$5.50 after having opened the day at $5.50 as compared to the previous trading day's close of $5.24.

I.D. Systems, Inc. develops, markets, and sells wireless solutions for managing and securing industrial vehicles, transportation assets, and rental vehicles. I D Systems has a market cap of $67.0 million and is part of the technology sector. Shares are down 9.5% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate I D Systems a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates I D Systems 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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from TheStreet Ratings analysis on IDSY go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 7.0%. Since the same quarter one year prior, revenues slightly increased by 6.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • IDSY's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, IDSY has a quick ratio of 2.23, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 35.31% is the gross profit margin for I D SYSTEMS INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, IDSY's net profit margin of -27.24% significantly underperformed when compared to the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 195.8% when compared to the same quarter one year ago, falling from -$1.05 million to -$3.09 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, I D SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: I D Systems Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close, Glowpoint ( GLOW) was down $0.06 (3.4%) to $1.72 on average volume. Throughout the day, 49,378 shares of Glowpoint exchanged hands as compared to its average daily volume of 46,100 shares. The stock ranged in price between $1.69-$1.79 after having opened the day at $1.78 as compared to the previous trading day's close of $1.78.

Glowpoint has a market cap of $60.1 million and is part of the technology sector. Shares are up 22.5% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on GLOW go as follows:

You can view the full analysis from the report here: Glowpoint Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

RELM Wireless ( RWC) was another company that pushed the Telecommunications industry lower today. RELM Wireless was down $0.07 (2.1%) to $3.29 on light volume. Throughout the day, 4,955 shares of RELM Wireless exchanged hands as compared to its average daily volume of 20,200 shares. The stock ranged in price between $3.18-$3.34 after having opened the day at $3.34 as compared to the previous trading day's close of $3.36.

RELM Wireless Corporation designs, manufactures, and markets wireless communications products under the BK Radio and RELM brand names in the United States and internationally. Its products include two-way land mobile radios, repeaters, base stations, and related components and subsystems. RELM Wireless has a market cap of $42.0 million and is part of the technology sector. Shares are down 8.6% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates RELM Wireless 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 feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on RWC go as follows:

  • The revenue growth came in higher than the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 6.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • RWC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.39, which clearly demonstrates the ability to cover short-term cash needs.
  • 46.74% is the gross profit margin for RELM WIRELESS CORP which we consider to be strong. Regardless of RWC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RWC's net profit margin of 0.42% is significantly lower than the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Communications Equipment industry and the overall market, RELM WIRELESS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $0.43 million or 26.12% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

You can view the full analysis from the report here: RELM Wireless Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

More from Markets

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Video: One-on-One With Pluralsight's CEO Following Its Successful IPO

Video: One-on-One With Pluralsight's CEO Following Its Successful IPO

CBS-Viacom Battle Comes to a Head; FDA Approves Novartis Migraine Drug --ICMYI

CBS-Viacom Battle Comes to a Head; FDA Approves Novartis Migraine Drug --ICMYI

Listen: Here's What You Need To Know About ETFs Today (Hint: They're on Fire!)

Listen: Here's What You Need To Know About ETFs Today (Hint: They're on Fire!)

Cramer and His Team Stick to Their Disciplines -- Even When It's Disappointing

Cramer and His Team Stick to Their Disciplines -- Even When It's Disappointing