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 173.45 points (-1.1%) at 16,142 as of Wednesday, Oct. 15, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,470 issues advancing vs. 1,677 declining with 92 unchanged.

The Telecommunications industry as a whole closed the day up 1.0% versus the S&P 500, which was down 0.8%. Top gainers within the Telecommunications industry included Internet Initiative Japan ( IIJI), up 1.5%, EXFO ( EXFO), up 3.8%, Ikanos Communications ( IKAN), up 6.7%, Envivio ( ENVI), up 2.5% and eOn Communications ( EONC), up 3.9%.

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

Ikanos Communications ( IKAN) is one of the companies that pushed the Telecommunications industry higher today. Ikanos Communications was up $0.02 (6.7%) to $0.32 on heavy volume. Throughout the day, 593,470 shares of Ikanos Communications exchanged hands as compared to its average daily volume of 254,100 shares. The stock ranged in a price between $0.28-$0.32 after having opened the day at $0.30 as compared to the previous trading day's close of $0.30.

Ikanos Communications, Inc. designs, develops, markets, and sells semiconductors and integrated firmware products for the digital home worldwide. It offers various digital subscriber line (DSL) processors for a range of power carrier infrastructure and customer premises equipment devices. Ikanos Communications has a market cap of $29.8 million and is part of the technology sector. Shares are down 75.0% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Ikanos Communications a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Ikanos Communications as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on IKAN 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 Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 42.2% when compared to the same quarter one year ago, falling from -$8.67 million to -$12.33 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 Semiconductors & Semiconductor Equipment industry and the overall market, IKANOS COMMUNICATIONS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$10.57 million or 61.95% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • IKAN's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 75.20%, which is also worse than the performance of the S&P 500 Index. 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.
  • IKANOS COMMUNICATIONS 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 two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, IKANOS COMMUNICATIONS INC reported poor results of -$0.40 versus -$0.24 in the prior year. This year, the market expects an improvement in earnings (-$0.33 versus -$0.40).

You can view the full analysis from the report here: Ikanos Communications Ratings Report

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At the close, EXFO ( EXFO) was up $0.14 (3.8%) to $3.70 on light volume. Throughout the day, 12,704 shares of EXFO exchanged hands as compared to its average daily volume of 18,600 shares. The stock ranged in a price between $3.55-$3.70 after having opened the day at $3.55 as compared to the previous trading day's close of $3.57.

EXFO Inc. provides test and service assurance solutions for wireline and wireless network operators and equipment manufacturers in the telecommunications industry. EXFO has a market cap of $102.2 million and is part of the technology sector. Shares are down 25.2% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate EXFO a buy, 1 analyst rates it a sell, and 2 rate it a hold.

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TheStreet Ratings rates EXFO as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from TheStreet Ratings analysis on EXFO go as follows:

  • The revenue growth came in higher than the industry average of 4.1%. Since the same quarter one year prior, revenues slightly increased by 8.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • EXFO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, EXFO has a quick ratio of 2.45, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for EXFO INC is rather high; currently it is at 63.26%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, EXFO's net profit margin of 2.60% significantly trails the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Communications Equipment industry and the overall market, EXFO INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • EXFO has underperformed the S&P 500 Index, declining 23.16% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.

You can view the full analysis from the report here: EXFO 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.

Internet Initiative Japan ( IIJI) was another company that pushed the Telecommunications industry higher today. Internet Initiative Japan was up $0.13 (1.5%) to $8.57 on light volume. Throughout the day, 1,967 shares of Internet Initiative Japan exchanged hands as compared to its average daily volume of 4,200 shares. The stock ranged in a price between $8.48-$8.57 after having opened the day at $8.48 as compared to the previous trading day's close of $8.44.

Internet Initiative Japan Inc., together with its subsidiaries, offers Internet connectivity, WAN, outsourcing, and systems integration services primarily in Japan. The company operates in two segments: Network Services and Systems Integration Business, and ATM Operation Business. Internet Initiative Japan has a market cap of $771.8 million and is part of the technology sector. Shares are down 36.9% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Internet Initiative Japan a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Internet Initiative Japan as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from TheStreet Ratings analysis on IIJI go as follows:

  • IIJI's revenue growth trails the industry average of 27.9%. Since the same quarter one year prior, revenues slightly increased by 2.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.31, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.20 is sturdy.
  • 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 Internet Software & Services industry. The net income has significantly decreased by 49.6% when compared to the same quarter one year ago, falling from $9.61 million to $4.85 million.
  • The gross profit margin for INTERNET INITIATIVE JAPAN INC is currently lower than what is desirable, coming in at 26.53%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.78% significantly trails the industry average.

You can view the full analysis from the report here: Internet Initiative Japan 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.

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.