Forget These 2 Wireless Stocks, Buy These 2 Instead

The wireless telecommunications industry is a rather competitive one. Wireless providers are ridding the concept of the 2-year contract and offering monthly payments for devices instead. Some wireless companies are even expanding their services into the once taboo nation of Cuba.

Let’s take a look at 4 stocks in the wireless communications industry and determine which 2 stocks you should consider selling and 2 stocks that you should consider adding to you portfolio.

2 Stocks on the Decline – SITO Mobile & TeleNav, Inc.

SITO Mobile Ltd. (SITO – Snapshot Report) and TeleNav Inc. (TNAV – Snapshot Report) are sharing the bottom spot, ranking 16th in our “Wireless National” industry. Both companies have a Zacks Rank #5 (Strong Sell) compared to their previous week’s Zack Rank #3 (Hold). Their Style Scores are not much better, in which SITO Mobile has a ‘C’ in growth, a ‘F’ in value, and an ‘A’ in momentum, compared to TeleNav Inc. having ‘F’s’ in all three categories.

Earnings for the two wireless companies only complement their Zacks Ranks. SITO Mobile, according to the data we have available, has never posted a positive EPS figure. Since the earnings period ending in March of 2012, SITO Mobile has consistently posted earnings figures fluctuating between $0.1 and -$0.2. The company’s most recent quarter reported a -$0.07 EPS.

TeleNav Inc. has not reported positive earnings figures since the quarter ending in September of 2013. The company has outperformed the Zacks Consensus Estimate in the past 4 earnings quarters, yet only marginally. The most recent quarter, TeleNav only outperformed the estimate by 5%.

2 Stocks on the Rise – AT&T and T-Mobile

AT&T Inc. (T – Analyst Report) and T-Mobile Inc. (TMUS – Analyst Report) are sharing the top spot, ranking 1st in our “Wireless National” industry. Both companies have a Zacks Rank #2 (Buy) compared to their previous week’s Zacks Rank #3 (Hold). Of the two companies, AT&T has the better Style Scores, which has grades of a ‘C’ in growth, an ‘A’ in value, and a ‘C’ in momentum. T-Mobile, on the contrary, has a ‘D’ in growth, a ‘C’ in value, and a ‘D’ in momentum.