3 Telecommunications Stocks Nudging The Industry Higher

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.

Two out of the three major indices traded up today The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 5 points (0.0%) at 16,911 as of Thursday, June 19, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,514 issues advancing vs. 1,469 declining with 176 unchanged.

The Telecommunications industry as a whole closed the day up 0.1% versus the S&P 500, which was up 0.1%. Top gainers within the Telecommunications industry included Optical Cable ( OCC), up 4.0%, Technical Communications ( TCCO), up 1.8%, Internet Gold Golden Lines ( IGLD), up 5.3%, B Communications ( BCOM), up 2.1% and RIT Technologies ( RITT), up 1.5%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

RIT Technologies ( RITT) is one of the companies that pushed the Telecommunications industry higher today. RIT Technologies was up $0.02 (1.5%) to $1.34 on light volume. Throughout the day, 8,890 shares of RIT Technologies exchanged hands as compared to its average daily volume of 42,100 shares. The stock ranged in a price between $1.32-$1.35 after having opened the day at $1.32 as compared to the previous trading day's close of $1.32.

RiT Technologies Ltd. provides intelligent infrastructure management (IIM) and indoor optical wireless technology solutions. Its IIM products enhance security and network utilization for data centers, communication rooms, and work space environments. RIT Technologies has a market cap of $17.2 million and is part of the technology sector. Shares are down 25.0% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate RIT Technologies 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 RIT Technologies as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on RITT go as follows:

  • RITT's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 62.09%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Communications Equipment industry and the overall market, RIT TECHNOLOGIES LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite currently having a low debt-to-equity ratio of 0.35, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that RITT's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.89 is high and demonstrates strong liquidity.
  • 40.28% is the gross profit margin for RIT TECHNOLOGIES LTD which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -93.84% is in-line with the industry average.
  • RIT TECHNOLOGIES LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, RIT TECHNOLOGIES LTD continued to lose money by earning -$1.05 versus -$1.92 in the prior year.

You can view the full analysis from the report here: RIT Technologies 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, B Communications ( BCOM) was up $0.38 (2.1%) to $18.60 on heavy volume. Throughout the day, 11,049 shares of B Communications exchanged hands as compared to its average daily volume of 2,500 shares. The stock ranged in a price between $17.25-$19.00 after having opened the day at $18.54 as compared to the previous trading day's close of $18.22.

B Communications Ltd. provides various communications services in Israel. B Communications has a market cap of $544.0 million and is part of the technology sector. Shares are up 4.0% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate B Communications 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 B Communications as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from TheStreet Ratings analysis on BCOM go as follows:

  • Compared to its closing price of one year ago, BCOM's share price has jumped by 145.04%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.4%. Since the same quarter one year prior, revenues slightly increased by 0.1%. 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.
  • 42.97% is the gross profit margin for B COMMUNICATIONS LTD which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -8.78% is in-line with the industry average.
  • The debt-to-equity ratio is very high at 16.58 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, BCOM maintains a poor quick ratio of 0.92, which illustrates the inability to avoid short-term cash problems.
  • 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 Diversified Telecommunication Services industry and the overall market, B COMMUNICATIONS LTD'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: B Communications 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.

Internet Gold Golden Lines ( IGLD) was another company that pushed the Telecommunications industry higher today. Internet Gold Golden Lines was up $0.56 (5.3%) to $11.13 on average volume. Throughout the day, 5,602 shares of Internet Gold Golden Lines exchanged hands as compared to its average daily volume of 4,100 shares. The stock ranged in a price between $10.99-$11.32 after having opened the day at $10.99 as compared to the previous trading day's close of $10.57.

Internet Gold Golden Lines has a market cap of $206.8 million and is part of the technology sector. Shares are up 23.5% year-to-date as of the close of trading on Wednesday.

Highlights from TheStreet Ratings analysis on IGLD go as follows:

You can view the full analysis from the report here: Internet Gold Golden Lines 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.

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.

More from Markets

Dow Plunges on Trade War Worries but Walmart and Verizon Finish Positively

Dow Plunges on Trade War Worries but Walmart and Verizon Finish Positively

Tuesday Turnaround in Politics: Is a Trade War on the Horizon?

Tuesday Turnaround in Politics: Is a Trade War on the Horizon?

FANG Stocks Get Swept Up in Broader Market Selloff

FANG Stocks Get Swept Up in Broader Market Selloff

Snap Shares Plunge After Cowen Cuts Price Target

Snap Shares Plunge After Cowen Cuts Price Target

Netflix Shares Hit All-Time High as Market Flounders

Netflix Shares Hit All-Time High as Market Flounders