3 Stocks Pulling The Technology Sector 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.

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 16 points (0.1%) at 16,733 as of Monday, June 2, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,394 issues advancing vs. 1,564 declining with 187 unchanged.

The Technology sector currently sits down 0.7% versus the S&P 500, which is unchanged. On the negative front, top decliners within the sector include STMicroelectronics ( STM), down 3.1%, LinkedIn ( LNKD), down 3.0%, American Tower ( AMT), down 1.6%, LM Ericsson Telephone Company ( ERIC), down 1.4% and Amazon.com ( AMZN), down 1.4%. Top gainers within the sector include Broadcom ( BRCM), up 9.6%, Infosys ( INFY), up 1.9%, Kyocera ( KYO), up 1.9%, Telecom Italia SpA ( TI.A), up 1.5% and Applied Materials ( AMAT), up 1.0%.

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 $0.13 (-3.2%) to $3.88 on heavy volume. Thus far, 7.2 million shares of Alcatel-Lucent exchanged hands as compared to its average daily volume of 9.2 million shares. The stock has ranged in price between $3.88-$3.92 after having opened the day at $3.91 as compared to the previous trading day's close of $4.01.

Alcatel-Lucent provides Internet protocol (IP) and cloud networking, and ultra-broadband fixed and wireless access to service providers and their customers, enterprises, and institutions worldwide. The company operates in three segments: Core Networking, Access, and Other. Alcatel-Lucent has a market cap of $11.3 billion and is part of the telecommunications industry. Shares are down 8.9% year-to-date as of the close of trading on Friday. 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 generally higher debt management risk and weak operating cash flow. 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, Sap ( SAP) is down $0.72 (-0.9%) to $75.78 on light volume. Thus far, 332,516 shares of Sap exchanged hands as compared to its average daily volume of 983,700 shares. The stock has ranged in price between $75.64-$76.18 after having opened the day at $76.17 as compared to the previous trading day's close of $76.50.

SAP AG provides enterprise application software and software-related services worldwide. Sap has a market cap of $91.3 billion and is part of the computer software & services industry. Shares are down 12.2% year-to-date as of the close of trading on Friday. Currently there are 6 analysts that rate Sap a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Sap as a buy. 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, notable return on equity, reasonable valuation levels and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Sap 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 $3.01 (-3.3%) to $88.82 on average volume. Thus far, 1.9 million shares of Qihoo 360 Technology exchanged hands as compared to its average daily volume of 3.6 million shares. The stock has ranged in price between $88.46-$92.38 after having opened the day at $92.15 as compared to the previous trading day's close of $91.83.

Qihoo 360 Technology Co. Ltd. provides Internet and mobile security products and services in the People's Republic of China. Qihoo 360 Technology has a market cap of $12.0 billion and is part of the computer software & services industry. Shares are up 11.9% year-to-date as of the close of trading on Friday. Currently there are 9 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, growth in earnings per share and compelling growth in net income. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation. 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 3 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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