3 Stocks Dragging In The Telecommunications Industry

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 13 points (0.1%) at 16,507 as of Monday, Aug. 4, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,334 issues advancing vs. 1,665 declining with 161 unchanged.

The Telecommunications industry currently is unchanged today versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the industry include Chunghwa Telecom ( CHT), down 1.0%, and China Telecom ( CHA), down 0.5%. A company within the industry that increased today was Telecom Italia SpA ( TI), up 1.4%.

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

3. Telefonica ( TEF) is one of the companies pushing the Telecommunications industry lower today. As of noon trading, Telefonica is down $0.14 (-0.9%) to $16.01 on average volume. Thus far, 399,243 shares of Telefonica exchanged hands as compared to its average daily volume of 993,000 shares. The stock has ranged in price between $15.98-$16.10 after having opened the day at $16.09 as compared to the previous trading day's close of $16.15.

Telefonica, S.A. provides fixed and mobile communication services primarily in Europe and Latin America. The company offers mobile voice, mobile data and Internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services. Telefonica has a market cap of $73.9 billion and is part of the technology sector. Shares are down 1.2% year-to-date as of the close of trading on Friday. Currently there are no analysts that rate Telefonica a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates Telefonica as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, notable return on equity and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins. Get the full Telefonica 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, Tim Participacoes ( TSU) is down $0.55 (-2.0%) to $26.79 on average volume. Thus far, 418,623 shares of Tim Participacoes exchanged hands as compared to its average daily volume of 956,700 shares. The stock has ranged in price between $26.71-$27.44 after having opened the day at $27.41 as compared to the previous trading day's close of $27.34.

TIM Participac es S.A., through its subsidiaries, provides telecommunication services in Brazil. The company offers mobile, fixed, and long distance telephony; data transmission; and Internet services. Tim Participacoes has a market cap of $12.9 billion and is part of the technology sector. Shares are up 4.2% year-to-date as of the close of trading on Friday. Currently there are 3 analysts that rate Tim Participacoes a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Tim Participacoes as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we find that the company's return on equity has been disappointing. Get the full Tim Participacoes 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, America Movil SAB de CV ( AMX) is down $0.14 (-0.6%) to $23.31 on average volume. Thus far, 2.1 million shares of America Movil SAB de CV exchanged hands as compared to its average daily volume of 5.5 million shares. The stock has ranged in price between $23.28-$23.59 after having opened the day at $23.51 as compared to the previous trading day's close of $23.45.

America Movil, S.A.B. de C.V. provides telecommunications services in the United States, Latin America, and the Caribbean. America Movil SAB de CV has a market cap of $83.1 billion and is part of the technology sector. Shares are up 0.3% year-to-date as of the close of trading on Friday. Currently there is 1 analyst that rates America Movil SAB de CV a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates America Movil SAB de CV as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, growth in earnings per share, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full America Movil SAB de CV 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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