3 Stocks Moving The Telecommunications Industry Upward

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 116.81 points (-0.7%) at 17,056 as of Tuesday, Sept. 23, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 891 issues advancing vs. 2,185 declining with 134 unchanged.

The Telecommunications industry as a whole closed the day down 0.7% versus the S&P 500, which was down 0.6%. Top gainers within the Telecommunications industry included Sajan ( SAJA), up 1.8%, Internet Gold Golden Lines ( IGLD), up 4.2%, RIT Technologies ( RITT), up 39.9%, Technical Communications ( TCCO), up 2.7% and Blonder Tongue Laboratories ( BDR), up 2.2%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

RIT Technologies ( RITT) is one of the companies that pushed the Telecommunications industry higher today. RIT Technologies was up $0.55 (39.9%) to $1.93 on heavy volume. Throughout the day, 1,141,941 shares of RIT Technologies exchanged hands as compared to its average daily volume of 40,600 shares. The stock ranged in a price between $1.28-$1.97 after having opened the day at $1.36 as compared to the previous trading day's close of $1.38.

RiT Technologies Ltd. provides intelligent infrastructure management (IIM) and indoor optical wireless technology solutions. Its IIM products enhance security and network utilization for data centers, communication rooms, and work space environments. RIT Technologies has a market cap of $15.4 million and is part of the technology sector. Shares are down 21.6% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate RIT Technologies a buy, no analysts rate it a sell, and none rate it a hold.

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

TheStreet Ratings rates RIT Technologies as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on RITT go as follows:

  • 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 Communications Equipment industry. The net income has significantly decreased by 62.4% when compared to the same quarter one year ago, falling from -$1.60 million to -$2.59 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 Communications Equipment industry and the overall market, RIT TECHNOLOGIES LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for RIT TECHNOLOGIES LTD is currently lower than what is desirable, coming in at 31.24%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -154.77% is significantly below that of the industry average.
  • Looking at the price performance of RITT's shares over the past 12 months, there is not much good news to report: the stock is down 54.35%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than 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.
  • RIT TECHNOLOGIES LTD's earnings per share declined by 11.1% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, RIT TECHNOLOGIES LTD continued to lose money by earning -$1.05 versus -$1.92 in the prior year.

You can view the full analysis from the report here: RIT Technologies 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.

At the close, Internet Gold Golden Lines ( IGLD) was up $0.38 (4.2%) to $9.43 on heavy volume. Throughout the day, 10,763 shares of Internet Gold Golden Lines exchanged hands as compared to its average daily volume of 3,800 shares. The stock ranged in a price between $9.12-$9.51 after having opened the day at $9.51 as compared to the previous trading day's close of $9.05.

Internet Gold Golden Lines has a market cap of $177.4 million and is part of the technology sector. Shares are up 5.7% year-to-date as of the close of trading on Monday.

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

Sajan ( SAJA) was another company that pushed the Telecommunications industry higher today. Sajan was up $0.09 (1.8%) to $5.20 on heavy volume. Throughout the day, 4,800 shares of Sajan exchanged hands as compared to its average daily volume of 2,200 shares. The stock ranged in a price between $5.20-$5.35 after having opened the day at $5.25 as compared to the previous trading day's close of $5.11.

Sajan has a market cap of $21.8 million and is part of the technology sector. Shares are down 12.0% year-to-date as of the close of trading on Monday.

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.

If you liked this article you might like

3 Stocks Boosting The Telecommunications Industry Higher

3 Stocks Boosting The Telecommunications Industry Higher

3 Stocks Raising The Telecommunications Industry Higher

3 Stocks Raising The Telecommunications Industry Higher

RiT Technologies (RITT) Stock Spikes After Wipro Agreement Announcement

RiT Technologies (RITT) Stock Spikes After Wipro Agreement Announcement

3 Stocks Pushing The Telecommunications Industry Lower

3 Stocks Pushing The Telecommunications Industry Lower

3 Stocks Pushing The Telecommunications Industry Lower

3 Stocks Pushing The Telecommunications Industry Lower