CHU, VIV And ERIC, 3 Telecommunications Stocks Pushing The 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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 60 points (0.4%) at 16,603 as of Friday, May 23, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 2,002 issues advancing vs. 938 declining with 179 unchanged.

The Telecommunications industry currently sits up 0.6% versus the S&P 500, which is up 0.3%.

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

3. China Unicom (Hong Kong ( CHU) is one of the companies pushing the Telecommunications industry lower today. As of noon trading, China Unicom (Hong Kong is down $0.19 (-1.3%) to $14.90 on light volume. Thus far, 65,233 shares of China Unicom (Hong Kong exchanged hands as compared to its average daily volume of 609,000 shares. The stock has ranged in price between $14.83-$14.93 after having opened the day at $14.90 as compared to the previous trading day's close of $15.09.

China Unicom (Hong Kong) Limited, an investment holding company, provides cellular and fixed-line voice, broadband and other Internet-related, information communications technology, and business and data communications services in China. China Unicom (Hong Kong has a market cap of $35.6 billion and is part of the technology sector. Shares are up 0.2% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts that rate China Unicom (Hong Kong a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates China Unicom (Hong Kong 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 impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including relatively poor performance when compared with the S&P 500 during the past year and poor profit margins. Get the full China Unicom (Hong Kong 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 Brasil ( VIV) is down $0.25 (-1.2%) to $20.38 on light volume. Thus far, 464,177 shares of Telefonica Brasil exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $20.37-$20.62 after having opened the day at $20.61 as compared to the previous trading day's close of $20.63.

Telefonica Brasil S.A. provides fixed-line telecommunications services to residential and commercial customers in Brazil. Telefonica Brasil has a market cap of $23.1 billion and is part of the technology sector. Shares are up 7.3% year-to-date as of the close of trading on Thursday. Currently there are 4 analysts that rate Telefonica Brasil a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Telefonica Brasil as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. 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. Get the full Telefonica Brasil 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 $0.14 (-1.1%) to $12.20 on light volume. Thus far, 1.2 million shares of LM Ericsson Telephone Company exchanged hands as compared to its average daily volume of 4.5 million shares. The stock has ranged in price between $12.20-$12.28 after having opened the day at $12.26 as compared to the previous trading day's close of $12.34.

Ericsson provides telecommunications equipment and services to mobile and fixed network operators worldwide. It operates through four segments: Networks, Global Services, Support Solutions, and Modems. LM Ericsson Telephone Company has a market cap of $41.0 billion and is part of the technology sector. Shares are up 0.8% year-to-date as of the close of trading on Thursday. Currently there are 5 analysts that rate LM Ericsson Telephone Company a buy, 1 analyst rates it a sell, and 3 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, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. 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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