3 Stocks Pushing The Telecommunications Industry 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 Telecommunications industry as a whole closed the day up 0.1% versus the S&P 500, which was down 0.2%. Laggards within the Telecommunications industry included Maxcom Telecomunicaciones SAB de CV ( MXT), down 3.8%, Internet Gold Golden Lines ( IGLD), down 3.6%, Voltari ( VLTC), down 5.2%, I D Systems ( IDSY), down 5.1% and Iteris ( ITI), down 2.5%.

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

I D Systems ( IDSY) is one of the companies that pushed the Telecommunications industry lower today. I D Systems was down $0.29 (5.1%) to $5.41 on heavy volume. Throughout the day, 44,130 shares of I D Systems exchanged hands as compared to its average daily volume of 21,600 shares. The stock ranged in price between $5.36-$5.72 after having opened the day at $5.62 as compared to the previous trading day's close of $5.70.

I.D. Systems, Inc. develops, markets, and sells wireless solutions for managing and securing industrial vehicles, transportation assets, and rental vehicles. I D Systems has a market cap of $68.7 million and is part of the technology sector. Shares are down 1.6% year-to-date as of the close of trading on Wednesday. Currently there are 3 analysts who rate I D Systems a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates I D Systems as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on IDSY go as follows:

  • 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 Electronic Equipment, Instruments & Components industry and the overall market, I D SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • IDSY has underperformed the S&P 500 Index, declining 14.57% from its price level of one year ago. 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.
  • I D SYSTEMS INC reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, I D SYSTEMS INC reported poor results of -$0.63 versus -$0.23 in the prior year. This year, the market expects an improvement in earnings (-$0.30 versus -$0.63).
  • 49.83% is the gross profit margin for I D SYSTEMS INC which we consider to be strong. Regardless of IDSY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, IDSY's net profit margin of -14.93% significantly underperformed when compared to the industry average.
  • The net income growth from the same quarter one year ago has exceeded that of the Electronic Equipment, Instruments & Components industry average, but is less than that of the S&P 500. The net income increased by 0.1% when compared to the same quarter one year prior, going from -$1.71 million to -$1.71 million.

You can view the full analysis from the report here: I D Systems Ratings Report

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At the close, Internet Gold Golden Lines ( IGLD) was down $0.36 (3.6%) to $9.61 on light volume. Throughout the day, 2,844 shares of Internet Gold Golden Lines exchanged hands as compared to its average daily volume of 3,800 shares. The stock ranged in price between $9.61-$9.88 after having opened the day at $9.61 as compared to the previous trading day's close of $9.97.

Internet Gold Golden Lines has a market cap of $188.2 million and is part of the technology sector. Shares are up 14.5% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Maxcom Telecomunicaciones SAB de CV ( MXT) was another company that pushed the Telecommunications industry lower today. Maxcom Telecomunicaciones SAB de CV was down $0.06 (3.8%) to $1.53 on light volume. Throughout the day, 158 shares of Maxcom Telecomunicaciones SAB de CV exchanged hands as compared to its average daily volume of 7,100 shares. The stock ranged in price between $1.53-$1.53 after having opened the day at $1.53 as compared to the previous trading day's close of $1.59.

Maxcom Telecomunicaciones, S.A.B. de C.V., an integrated telecommunication services operator, provides voice and data services to residential and small and medium-sized business customers in Mexico. Maxcom Telecomunicaciones SAB de CV has a market cap of $234.4 million and is part of the technology sector. Shares are down 2.5% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Maxcom Telecomunicaciones SAB de CV a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Maxcom Telecomunicaciones SAB de CV as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on MXT go as follows:

  • MAXCOM TELECOMUNICACIONES SA 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. During the past fiscal year, MAXCOM TELECOMUNICACIONES SA reported poor results of -$0.57 versus -$0.11 in the prior year.
  • 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 Diversified Telecommunication Services industry. The net income has significantly decreased by 134.3% when compared to the same quarter one year ago, falling from $4.19 million to -$1.44 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 Diversified Telecommunication Services industry and the overall market, MAXCOM TELECOMUNICACIONES SA's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 40.00%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 133.33% 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.
  • 49.71% is the gross profit margin for MAXCOM TELECOMUNICACIONES SA which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, MXT's net profit margin of -2.88% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Maxcom Telecomunicaciones SAB de CV 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.

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