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The Technology sector as a whole closed the day down 1.0% versus the S&P 500, which was down 1.3%. Laggards within the Technology sector included BluePhoenix Solutions ( BPHX), down 3.9%, Bel Fuse ( BELFA), down 2.5%, ModSys International ( MDSY), down 3.9%, One Horizon Group ( OHGI), down 2.0% and Video Display ( VIDE), down 8.9%.

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

Telefonica ( TEF) is one of the companies that pushed the Technology sector lower today. Telefonica was down $0.34 (2.2%) to $14.75 on average volume. Throughout the day, 1,495,925 shares of Telefonica exchanged hands as compared to its average daily volume of 1,625,600 shares. The stock ranged in price between $14.73-$15.05 after having opened the day at $14.92 as compared to the previous trading day's close of $15.09.

Telefonica, S.A. provides fixed and mobile communication services primarily in Europe and Latin America. The company offers mobile voice, mobile data and Internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services. Telefonica has a market cap of $68.4 billion and is part of the telecommunications industry. Shares are up 6.2% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Telefonica a buy, 1 analyst rates it a sell, and 2 rate it a hold.

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TheStreet Ratings rates Telefonica as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from TheStreet Ratings analysis on TEF go as follows:

  • 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 Diversified Telecommunication Services industry and the overall market on the basis of return on equity, TELEFONICA SA has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • TELEFONICA SA's earnings per share declined by 37.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TELEFONICA SA increased its bottom line by earning $1.39 versus $1.14 in the prior year. This year, the market expects an improvement in earnings ($1.92 versus $1.39).
  • The revenue fell significantly faster than the industry average of 1.8%. Since the same quarter one year prior, revenues fell by 32.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Diversified Telecommunication Services industry average, but is less than that of the S&P 500. The net income has significantly decreased by 37.3% when compared to the same quarter one year ago, falling from $1,581.90 million to $992.51 million.

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

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At the close, Bel Fuse ( BELFA) was down $0.53 (2.5%) to $21.00 on heavy volume. Throughout the day, 2,566 shares of Bel Fuse exchanged hands as compared to its average daily volume of 400 shares. The stock ranged in price between $20.82-$21.19 after having opened the day at $20.82 as compared to the previous trading day's close of $21.53.

Bel Fuse Inc. designs, manufactures, and sells products used in the networking, telecommunication, high-speed data transmission, commercial aerospace, military, broadcasting, transportation, and consumer electronic industries worldwide. Bel Fuse has a market cap of $47.1 million and is part of the telecommunications industry. Shares are down 9.8% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Bel Fuse as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and poor profit margins.

Highlights from TheStreet Ratings analysis on BELFA go as follows:

  • BELFA's very impressive revenue growth greatly exceeded the industry average of 5.7%. Since the same quarter one year prior, revenues leaped by 54.5%. 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.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • Net operating cash flow has decreased to $6.24 million or 37.09% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, BEL FUSE INC has marginally lower results.
  • 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 79.6% when compared to the same quarter one year ago, falling from $7.38 million to $1.51 million.

You can view the full analysis from the report here: Bel Fuse Ratings Report

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BluePhoenix Solutions ( BPHX) was another company that pushed the Technology sector lower today. BluePhoenix Solutions was down $0.13 (3.9%) to $3.17 on average volume. Throughout the day, 1,775 shares of BluePhoenix Solutions exchanged hands as compared to its average daily volume of 2,100 shares. The stock ranged in price between $3.10-$3.30 after having opened the day at $3.10 as compared to the previous trading day's close of $3.30.

BluePhoenix Solutions has a market cap of $41.1 million and is part of the telecommunications industry. Shares are down 11.8% year-to-date as of the close of trading on Tuesday.

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