3 Telecommunications Stocks Dragging The Industry 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 22 points (0.1%) at 16,756 as of Friday, June 13, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,558 issues advancing vs. 1,369 declining with 183 unchanged.

The Telecommunications industry currently sits up 0.1% versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the industry include LM Ericsson Telephone Company ( ERIC), down 1.0%, Telecom Italia SpA ( TI.A), down 0.8% and Telecom Italia SpA ( TI), down 0.8%.

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

3. VimpelCom ( VIP) is one of the companies pushing the Telecommunications industry lower today. As of noon trading, VimpelCom is down $0.37 (-4.2%) to $8.41 on average volume. Thus far, 1.6 million shares of VimpelCom exchanged hands as compared to its average daily volume of 3.0 million shares. The stock has ranged in price between $8.41-$8.73 after having opened the day at $8.73 as compared to the previous trading day's close of $8.78.

VimpelCom Ltd., a telecommunications service operator, provides voice and data services through a range of traditional and broadband mobile and fixed technologies. It operates in five segments: Russia, Italy, Africa & Asia, Ukraine, and the Commonwealth of Independent States. VimpelCom has a market cap of $15.3 billion and is part of the technology sector. Shares are down 32.1% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts that rate VimpelCom a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates VimpelCom as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself. Get the full VimpelCom 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, Alcatel-Lucent ( ALU) is down $0.05 (-1.3%) to $3.82 on average volume. Thus far, 3.9 million shares of Alcatel-Lucent exchanged hands as compared to its average daily volume of 9.4 million shares. The stock has ranged in price between $3.82-$3.86 after having opened the day at $3.86 as compared to the previous trading day's close of $3.87.

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 $10.7 billion and is part of the technology sector. Shares are down 12.1% year-to-date as of the close of trading on Thursday. 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.

1. As of noon trading, Crown Castle International ( CCI) is down $0.60 (-0.8%) to $73.75 on average volume. Thus far, 977,431 shares of Crown Castle International exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $73.02-$74.38 after having opened the day at $74.09 as compared to the previous trading day's close of $74.35.

Crown Castle International Corp., together with its subsidiaries, owns, operates, and leases shared wireless infrastructure in the United States and Australia. Crown Castle International has a market cap of $25.0 billion and is part of the technology sector. Shares are up 1.2% year-to-date as of the close of trading on Thursday. Currently there are 10 analysts that rate Crown Castle International a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Crown Castle International as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, good cash flow from operations, growth in earnings per share and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Crown Castle International 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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