3 Stocks Pushing The Technology Sector Lower
At the close, GSE Systems ( GVP) was down $0.03 (1.8%) to $1.66 on average volume. Throughout the day, 13,966 shares of GSE Systems exchanged hands as compared to its average daily volume of 9,600 shares. The stock ranged in price between $1.65-$1.69 after having opened the day at $1.69 as compared to the previous trading day's close of $1.69. GSE Systems, Inc. provides simulation, educational, and engineering solutions and services to the nuclear and fossil electric utility industry, and the chemical and petrochemical industries worldwide. GSE Systems has a market cap of $30.8 million and is part of the telecommunications industry. Shares are up 5.6% 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. TheStreet Ratings rates GSE Systems as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and poor profit margins. Highlights from TheStreet Ratings analysis on GVP go as follows:
- GSE SYSTEMS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, GSE SYSTEMS INC swung to a loss, reporting -$0.58 versus $0.06 in the prior year.
- 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 75.2% when compared to the same quarter one year ago, falling from -$1.16 million to -$2.02 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, GSE SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for GSE SYSTEMS INC is currently lower than what is desirable, coming in at 25.86%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -23.20% is significantly below that of the industry average.
- The revenue fell significantly faster than the industry average of 7.9%. Since the same quarter one year prior, revenues fell by 29.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
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