PHI, TLK And TEF, Pushing Telecommunications Industry Downward

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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 28 points (-0.2%) at 17,094 as of Thursday, Aug. 28, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,204 issues advancing vs. 1,745 declining with 194 unchanged.

The Telecommunications industry currently sits down 0.2% versus the S&P 500, which is down 0.1%. On the negative front, top decliners within the industry include Telefonica Brasil ( VIV), down 2.9%, Mobile Telesystems OJSC ( MBT), down 2.8%, America Movil SAB de CV ( AMOV), down 0.7% and Qualcomm ( QCOM), down 0.6%. A company within the industry that increased today was China Telecom ( CHA), up 4.5%.

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

3. Philippine Long Distance Telephone ( PHI) is one of the companies pushing the Telecommunications industry lower today. As of noon trading, Philippine Long Distance Telephone is down $1.69 (-2.2%) to $76.06 on heavy volume. Thus far, 138,790 shares of Philippine Long Distance Telephone exchanged hands as compared to its average daily volume of 66,500 shares. The stock has ranged in price between $75.75-$77.08 after having opened the day at $77.08 as compared to the previous trading day's close of $77.75.

Philippine Long Distance Telephone Company provides telecommunications services in the Philippines. Philippine Long Distance Telephone has a market cap of $16.6 billion and is part of the technology sector. Shares are up 29.4% year-to-date as of the close of trading on Wednesday. Currently there are no analysts that rate Philippine Long Distance Telephone a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Philippine Long Distance Telephone as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Philippine Long Distance Telephone 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, Telekomunikasi Indonesia (Persero) Tbk ( TLK) is down $0.84 (-1.8%) to $46.34 on average volume. Thus far, 157,904 shares of Telekomunikasi Indonesia (Persero) Tbk exchanged hands as compared to its average daily volume of 227,100 shares. The stock has ranged in price between $46.28-$46.68 after having opened the day at $46.28 as compared to the previous trading day's close of $47.18.

PT Telekomunikasi Indonesia, Tbk provides network and telecommunication services to individual and home customers, companies, and institutions in worldwide. It operates through four segments: Personal, Home, Corporate, and Others. Telekomunikasi Indonesia (Persero) Tbk has a market cap of $22.9 billion and is part of the technology sector. Shares are up 31.6% year-to-date as of the close of trading on Wednesday. Currently there are no analysts that rate Telekomunikasi Indonesia (Persero) Tbk a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Telekomunikasi Indonesia (Persero) Tbk as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Telekomunikasi Indonesia (Persero) Tbk 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, Telefonica ( TEF) is down $0.13 (-0.8%) to $15.85 on light volume. Thus far, 378,209 shares of Telefonica exchanged hands as compared to its average daily volume of 1.0 million shares. The stock has ranged in price between $15.82-$15.89 after having opened the day at $15.85 as compared to the previous trading day's close of $15.98.

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 $72.3 billion and is part of the technology sector. Shares are down 2.2% year-to-date as of the close of trading on Wednesday. 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.

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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