3 Stocks Pushing The Telecommunications Industry 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 Telecommunications industry as a whole was unchanged today versus the S&P 500, which was up 1.0%. Laggards within the Telecommunications industry included Glowpoint ( GLOW), down 1.7%, Internet Gold Golden Lines ( IGLD), down 4.0%, RRSat Global Communications Network ( RRST), down 2.6%, Optical Cable ( OCC), down 3.0% and WPCS International ( WPCS), down 9.8%.

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

RRSat Global Communications Network ( RRST) is one of the companies that pushed the Telecommunications industry lower today. RRSat Global Communications Network was down $0.19 (2.6%) to $7.15 on light volume. Throughout the day, 3,596 shares of RRSat Global Communications Network exchanged hands as compared to its average daily volume of 6,500 shares. The stock ranged in price between $7.12-$7.22 after having opened the day at $7.22 as compared to the previous trading day's close of $7.34.

RRsat Global Communications Network Ltd. provides digital media management and distribution services for broadcasters and content owners in North America, Europe, Asia, Israel, the Middle East, and internationally. RRSat Global Communications Network has a market cap of $127.9 million and is part of the technology sector. Shares are up 1.9% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates RRSat Global Communications Network a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates RRSat Global Communications Network as a buy. 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, reasonable valuation levels, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on RRST go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.4%. Since the same quarter one year prior, revenues slightly increased by 8.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • RRST 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, RRST has a quick ratio of 1.72, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has increased to $3.56 million or 45.34% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 17.49%.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Media industry average. The net income increased by 6.1% when compared to the same quarter one year prior, going from $1.10 million to $1.17 million.

You can view the full analysis from the report here: RRSat Global Communications Network Ratings Report

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At the close, Internet Gold Golden Lines ( IGLD) was down $0.17 (4.0%) to $4.04 on light volume. Throughout the day, 5,958 shares of Internet Gold Golden Lines exchanged hands as compared to its average daily volume of 8,700 shares. The stock ranged in price between $3.91-$4.20 after having opened the day at $4.19 as compared to the previous trading day's close of $4.21.

Internet Gold Golden Lines has a market cap of $84.5 million and is part of the technology sector. Shares are down 37.6% year-to-date as of the close of trading on Wednesday.

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Glowpoint ( GLOW) was another company that pushed the Telecommunications industry lower today. Glowpoint was down $0.02 (1.7%) to $1.03 on light volume. Throughout the day, 6,102 shares of Glowpoint exchanged hands as compared to its average daily volume of 18,700 shares. The stock ranged in price between $1.03-$1.09 after having opened the day at $1.09 as compared to the previous trading day's close of $1.05.

Glowpoint has a market cap of $37.5 million and is part of the technology sector. Shares are down 4.8% year-to-date as of the close of trading on Wednesday.

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

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