3 Stocks Pushing The Technology Sector 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.

The Technology sector as a whole closed the day down 1.0% versus the S&P 500, which was down 0.1%. Laggards within the Technology sector included Maxcom Telecomunicaciones SAB de CV ( MXT), down 2.0%, TSR ( TSRI), down 4.4%, Qualstar ( QBAK), down 9.1%, Trio-Tech International ( TRT), down 6.6% and Vicon Industries ( VII), down 2.2%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today:

BT Group ( BT) is one of the companies that pushed the Technology sector lower today. BT Group was down $1.12 (1.7%) to $64.40 on light volume. Throughout the day, 50,795 shares of BT Group exchanged hands as compared to its average daily volume of 124,600 shares. The stock ranged in price between $64.23-$64.68 after having opened the day at $64.23 as compared to the previous trading day's close of $65.52.

BT Group plc provides communications services worldwide. The company operates through BT Global Services, BT Business, BT Consumer, BT Wholesale, and Openreach segments. BT Group has a market cap of $52.0 billion and is part of the telecommunications industry. Shares are up 3.8% year-to-date as of the close of trading on Thursday. Currently there are 4 analysts who rate BT Group a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates BT Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from TheStreet Ratings analysis on BT go as follows:

  • The revenue growth came in higher than the industry average of 3.5%. Since the same quarter one year prior, revenues rose by 31.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 35.85% is the gross profit margin for BT GROUP PLC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 11.90% is above that of the industry average.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Diversified Telecommunication Services industry average. The net income increased by 38.0% when compared to the same quarter one year prior, rising from $694.30 million to $958.47 million.
  • Powered by its strong earnings growth of 37.64% and other important driving factors, this stock has surged by 26.03% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.

You can view the full analysis from the report here: BT Group Ratings Report

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