3 Stocks Pushing The Technology Sector 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 Technology sector as a whole closed the day down 0.6% versus the S&P 500, which was down 0.3%. Laggards within the Technology sector included Bridgeline Digital ( BLIN), down 2.7%, TigerLogic ( TIGR), down 3.5%, TSR ( TSRI), down 1.9%, Wells-Gardner Electronic ( WGA), down 3.3% and Aetrium ( ATRM), down 3.6%.

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

SK Telecom ( SKM) is one of the companies that pushed the Technology sector lower today. SK Telecom was down $0.70 (2.3%) to $30.34 on average volume. Throughout the day, 955,307 shares of SK Telecom exchanged hands as compared to its average daily volume of 956,000 shares. The stock ranged in price between $30.29-$30.67 after having opened the day at $30.57 as compared to the previous trading day's close of $31.04.

SK Telecom Co., Ltd. provides wireless telecommunications services in Korea. SK Telecom has a market cap of $19.7 billion and is part of the telecommunications industry. Shares are up 26.1% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate SK Telecom a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates SK Telecom as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on SKM go as follows:

  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 38.94% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SKM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • SK TELECOM CO LTD has improved earnings per share by 23.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SK TELECOM CO LTD increased its bottom line by earning $2.17 versus $1.84 in the prior year. This year, the market expects an improvement in earnings ($2.23 versus $2.17).
  • The revenue growth significantly trails the industry average of 60.8%. Since the same quarter one year prior, revenues rose by 27.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has significantly increased by 66.22% to $994.45 million when compared to the same quarter last year. In addition, SK TELECOM CO LTD has also vastly surpassed the industry average cash flow growth rate of 4.62%.

You can view the full analysis from the report here: SK Telecom Ratings Report

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