3 Stocks Dragging In The Telecommunications Industry

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All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 30 points (0.2%) at 16,949 as of Wednesday, Aug. 20, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,346 issues advancing vs. 1,589 declining with 185 unchanged.

The Telecommunications industry currently sits down 0.4% versus the S&P 500, which is up 0.1%. On the negative front, top decliners within the industry include Nortel Inversora ( NTL), down 8.1%, and American Tower ( AMT), down 0.6%.

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 $0.12 (-0.8%) to $15.60 on light volume. Thus far, 246,559 shares of Telefonica exchanged hands as compared to its average daily volume of 1.0 million shares. The stock has ranged in price between $15.56-$15.65 after having opened the day at $15.57 as compared to the previous trading day's close of $15.72.

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 $71.6 billion and is part of the technology sector. Shares are down 3.8% year-to-date as of the close of trading on Tuesday. 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 buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, increase in stock price during the past year, increase in net income and growth in earnings per share. 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 Telefonica Ratings Report now.

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2. As of noon trading, SK Telecom ( SKM) is down $0.38 (-1.3%) to $29.34 on average volume. Thus far, 450,341 shares of SK Telecom exchanged hands as compared to its average daily volume of 990,100 shares. The stock has ranged in price between $29.32-$29.63 after having opened the day at $29.61 as compared to the previous trading day's close of $29.72.

SK Telecom Co., Ltd. provides wireless telecommunications services in Korea. SK Telecom has a market cap of $18.6 billion and is part of the technology sector. Shares are up 20.7% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts that rate SK Telecom a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates SK Telecom as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full SK Telecom Ratings Report now.

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1. As of noon trading, LM Ericsson Telephone Company ( ERIC) is down $0.09 (-0.7%) to $12.44 on light volume. Thus far, 806,577 shares of LM Ericsson Telephone Company exchanged hands as compared to its average daily volume of 3.9 million shares. The stock has ranged in price between $12.40-$12.47 after having opened the day at $12.42 as compared to the previous trading day's close of $12.53.

Ericsson provides telecommunications equipment and services to mobile and fixed network operators worldwide. It operates through four segments: Networks, Global Services, Support Solutions, and Modems. LM Ericsson Telephone Company has a market cap of $40.3 billion and is part of the technology sector. Shares are up 1.7% year-to-date as of the close of trading on Tuesday. Currently there are 5 analysts that rate LM Ericsson Telephone Company a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Ratings rates LM Ericsson Telephone Company as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full LM Ericsson Telephone Company 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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