3 Stocks Pushing The Telecommunications Industry Higher

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.

One out of the three major indices traded up today Two out of the three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 38 points (0.2%) at 17,650 as of Thursday, Nov. 13, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 998 issues advancing vs. 2,012 declining with 159 unchanged.

The Telecommunications industry as a whole closed the day down 0.5% versus the S&P 500, which was unchanged. Top gainers within the Telecommunications industry included Sajan ( SAJA), up 5.2%, Internet Initiative Japan ( IIJI), up 2.4%, Internet Gold Golden Lines ( IGLD), up 4.8%, Technical Communications ( TCCO), up 1.8% and Frequency Electronics ( FEIM), up 2.3%.

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

Internet Gold Golden Lines ( IGLD) is one of the companies that pushed the Telecommunications industry higher today. Internet Gold Golden Lines was up $0.44 (4.8%) to $9.57 on average volume. Throughout the day, 5,819 shares of Internet Gold Golden Lines exchanged hands as compared to its average daily volume of 5,000 shares. The stock ranged in a price between $9.48-$9.57 after having opened the day at $9.51 as compared to the previous trading day's close of $9.13.

Internet Gold Golden Lines has a market cap of $176.9 million and is part of the technology sector. Shares are up 6.7% year-to-date as of the close of trading on Wednesday.

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At the close, Internet Initiative Japan ( IIJI) was up $0.22 (2.4%) to $9.38 on light volume. Throughout the day, 1,522 shares of Internet Initiative Japan exchanged hands as compared to its average daily volume of 3,800 shares. The stock ranged in a price between $9.31-$9.38 after having opened the day at $9.31 as compared to the previous trading day's close of $9.16.

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 $866.5 million and is part of the technology sector. Shares are down 31.5% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Internet Initiative Japan a buy, no analysts rate it a sell, and 1 rates 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 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 feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on IIJI go as follows:

  • IIJI's revenue growth trails the industry average of 27.5%. 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.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Internet Software & Services industry and the overall market, INTERNET INITIATIVE JAPAN INC's return on equity is below that of both the industry average and the S&P 500.
  • 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.

Sajan ( SAJA) was another company that pushed the Telecommunications industry higher today. Sajan was up $0.31 (5.2%) to $6.21 on average volume. Throughout the day, 4,197 shares of Sajan exchanged hands as compared to its average daily volume of 3,600 shares. The stock ranged in a price between $5.75-$6.21 after having opened the day at $5.90 as compared to the previous trading day's close of $5.90.

Sajan has a market cap of $29.8 million and is part of the technology sector. Shares are up 7.8% year-to-date as of the close of trading on Wednesday.

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.

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