3 Telecommunications Stocks Moving The Industry Upward

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 traded up today 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 down 30.21 points (-0.2%) at 16,882 as of Wednesday, July 30, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,028 issues advancing vs. 1,986 declining with 144 unchanged.

The Telecommunications industry as a whole closed the day up 0.8% versus the S&P 500, which was up 0.1%. Top gainers within the Telecommunications industry included Optical Cable ( OCC), up 2.6%, Internet Gold Golden Lines ( IGLD), up 6.5%, Technical Communications ( TCCO), up 1.7%, Ikanos Communications ( IKAN), up 2.0% and Gilat Satellite Networks ( GILT), up 2.5%.

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

Gilat Satellite Networks ( GILT) is one of the companies that pushed the Telecommunications industry higher today. Gilat Satellite Networks was up $0.12 (2.5%) to $4.82 on average volume. Throughout the day, 20,479 shares of Gilat Satellite Networks exchanged hands as compared to its average daily volume of 22,700 shares. The stock ranged in a price between $4.63-$4.84 after having opened the day at $4.66 as compared to the previous trading day's close of $4.70.

Gilat Satellite Networks Ltd. and its subsidiaries provide Internet protocol (IP) based digital satellite communication and networking products and services worldwide. It designs, produces, and markets very small aperture terminals (VSATs) and related VSAT network equipment. Gilat Satellite Networks has a market cap of $198.6 million and is part of the technology sector. Shares are up 0.5% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Gilat Satellite Networks 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 Gilat Satellite Networks as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and weak operating cash flow.

Highlights from TheStreet Ratings analysis on GILT go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Communications Equipment industry average. The net income has decreased by 14.0% when compared to the same quarter one year ago, dropping from -$2.36 million to -$2.69 million.
  • Net operating cash flow has decreased to -$5.93 million or 10.96% 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.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Communications Equipment industry and the overall market, GILAT SATELLITE NETWORKS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • This stock's share value has moved by only 8.39% over the past year. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • GILAT SATELLITE NETWORKS LTD's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, GILAT SATELLITE NETWORKS LTD continued to lose money by earning -$0.23 versus -$0.55 in the prior year.

You can view the full analysis from the report here: Gilat Satellite Networks 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, Ikanos Communications ( IKAN) was up $0.01 (2.0%) to $0.40 on light volume. Throughout the day, 109,401 shares of Ikanos Communications exchanged hands as compared to its average daily volume of 231,600 shares. The stock ranged in a price between $0.39-$0.41 after having opened the day at $0.40 as compared to the previous trading day's close of $0.39.

Ikanos Communications, Inc. designs, develops, markets, and sells semiconductors and integrated firmware products for the digital home worldwide. It offers various digital subscriber line (DSL) processors for a range of power carrier infrastructure and customer premises equipment devices. Ikanos Communications has a market cap of $39.5 million and is part of the technology sector. Shares are down 66.7% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Ikanos 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 Ikanos Communications as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on IKAN go as follows:

  • 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 133.3% when compared to the same quarter one year ago, falling from -$4.42 million to -$10.31 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 Semiconductors & Semiconductor Equipment industry and the overall market, IKANOS COMMUNICATIONS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$1.85 million or 270.50% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 70.00%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 66.66% compared to the year-earlier 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.
  • IKANOS COMMUNICATIONS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, IKANOS COMMUNICATIONS INC reported poor results of -$0.40 versus -$0.24 in the prior year. This year, the market expects an improvement in earnings (-$0.36 versus -$0.40).

You can view the full analysis from the report here: Ikanos 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 $0.64 (6.5%) to $10.50 on light volume. Throughout the day, 1,495 shares of Internet Gold Golden Lines exchanged hands as compared to its average daily volume of 3,800 shares. The stock ranged in a price between $9.80-$10.50 after having opened the day at $9.80 as compared to the previous trading day's close of $9.86.

Internet Gold Golden Lines has a market cap of $189.7 million and is part of the technology sector. Shares are up 15.4% year-to-date as of the close of trading on Tuesday.

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.

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