3 Internet Stocks Moving The Industry Upward
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 three major indices are trading lower today with the Dow Jones Industrial Average (^DJI) trading up 13 points (0.1%) at 16,969 as of Wednesday, July 2, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,178 issues advancing vs. 1,877 declining with 123 unchanged.The Internet industry as a whole was unchanged today versus the S&P 500, which was unchanged. Top gainers within the Internet industry included Professional Diversity Network (IPDN), up 3.2%, Selectica (SLTC), up 3.8%, BroadVision (BVSN), up 1.7%, ClickSoftware Technologies (CKSW), up 3.6% and Points International (PCOM), up 2.3%.TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:ClickSoftware Technologies (CKSW) is one of the companies that pushed the Internet industry higher today. ClickSoftware Technologies was up $0.31 (3.6%) to $8.90 on heavy volume. Throughout the day, 318,248 shares of ClickSoftware Technologies exchanged hands as compared to its average daily volume of 100,700 shares. The stock ranged in a price between $8.61-$9.11 after having opened the day at $8.79 as compared to the previous trading day's close of $8.59. ClickSoftware Technologies Ltd. provides software products and solutions for workforce management and optimization for mobile and in-house resources primarily in North America, Europe, Israel, and the Asia Pacific region. ClickSoftware Technologies has a market cap of $262.2 million and is part of the technology sector. Shares are up 14.5% year-to-date as of the close of trading on Tuesday. Currently there are 3 analysts who rate ClickSoftware Technologies a buy, no analysts rate it a sell, and none rate 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 ClickSoftware Technologies as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.Highlights from TheStreet Ratings analysis on CKSW go as follows:
- 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 Software industry. The net income has significantly decreased by 2398.8% when compared to the same quarter one year ago, falling from $0.09 million to -$1.95 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Software industry and the overall market, CLICKSOFTWARE TECHNOLOGIES's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has declined marginally to $3.73 million or 0.53% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- CLICKSOFTWARE TECHNOLOGIES's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CLICKSOFTWARE TECHNOLOGIES swung to a loss, reporting -$0.13 versus $0.23 in the prior year. This year, the market expects an improvement in earnings ($0.07 versus -$0.13).
- This stock's share value has moved by only 9.32% over the past year. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
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