- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Diversified Telecommunication Services industry average. The net income increased by 7.6% when compared to the same quarter one year prior, going from $1,470.82 million to $1,582.09 million.
- The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
- NIPPON TELEGRAPH & TELEPHONE has improved earnings per share by 13.6% 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, NIPPON TELEGRAPH & TELEPHONE reported lower earnings of $1.97 versus $2.47 in the prior year. This year, the market expects an improvement in earnings ($2.35 versus $1.97).
The Technology sector as a whole closed the day down 0.9% versus the S&P 500, which was down 0.2%. Laggards within the Technology sector included Qualstar ( QBAK), down 2.0%, GRAVITY ( GRVY), down 1.7%, Glowpoint ( GLOW), down 5.8%, Electro-Sensors ( ELSE), down 2.7% and Digital Power ( DPW), down 3.6%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today: Nippon Telegraph & Telephone ( NTT) is one of the companies that pushed the Technology sector lower today. Nippon Telegraph & Telephone was down $0.88 (2.2%) to $39.19 on light volume. Throughout the day, 272,124 shares of Nippon Telegraph & Telephone exchanged hands as compared to its average daily volume of 387,900 shares. The stock ranged in price between $38.97-$39.24 after having opened the day at $38.97 as compared to the previous trading day's close of $40.07. Nippon Telegraph and Telephone Corporation, together with its subsidiaries, provides fixed and mobile voice related services, IP/packet communications services, telecommunications equipment, and system integration and other telecommunications-related services in Japan. Nippon Telegraph & Telephone has a market cap of $169.1 billion and is part of the telecommunications industry. Shares are up 56.5% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Nippon Telegraph & Telephone a buy, no analysts rate it a sell, and none rate it a hold. EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE. TheStreet Ratings rates Nippon Telegraph & Telephone as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity. Highlights from TheStreet Ratings analysis on NTT go as follows: