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.

All three major indices are trading down today with the

Dow Jones Industrial Average

(

^DJI

) trading down 223.03 points (-1.3%) at 16,321 as of Monday, Oct. 13, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 968 issues advancing vs. 2,084 declining with 146 unchanged.

The Computer Hardware industry as a whole closed the day down 1.0% versus the S&P 500, which was down 1.6%. Top gainers within the Computer Hardware industry included

Qumu

(

QUMU

), up 2.0%,

Digi International

(

DGII

), up 2.5%,

Datalink

(

DTLK

), up 1.8%,

Dot Hill Systems

(

HILL

), up 4.1% and

Mercury Systems

(

MRCY

), up 2.5%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Datalink

(

DTLK

) is one of the companies that pushed the Computer Hardware industry higher today. Datalink was up $0.18 (1.8%) to $10.21 on average volume. Throughout the day, 92,233 shares of Datalink exchanged hands as compared to its average daily volume of 85,500 shares. The stock ranged in a price between $10.03-$10.57 after having opened the day at $10.03 as compared to the previous trading day's close of $10.03.

Datalink Corporation designs, installs, and supports data center solutions to mid and large-size companies. Datalink has a market cap of $229.5 million and is part of the technology sector. Shares are down 6.4% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Datalink a buy, no analysts rate it a sell, and 2 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

Datalink

as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on DTLK go as follows:

  • The revenue growth came in higher than the industry average of 12.4%. Since the same quarter one year prior, revenues slightly increased by 7.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the IT Services industry average. The net income increased by 22.7% when compared to the same quarter one year prior, going from $2.90 million to $3.56 million.
  • DTLK's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.94 is somewhat weak and could be cause for future problems.
  • DATALINK CORP reported flat earnings per share in the most recent quarter. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, DATALINK CORP reported lower earnings of $0.49 versus $0.59 in the prior year. This year, the market expects an improvement in earnings ($0.79 versus $0.49).
  • DTLK has underperformed the S&P 500 Index, declining 22.14% from its price level of one year ago. Despite the decline in its share price over the last year, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry. We feel, however, that other strengths this company displays compensate for this.

You can view the full analysis from the report here:

Datalink Ratings Report

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

At the close,

Digi International

(

DGII

) was up $0.18 (2.5%) to $7.44 on average volume. Throughout the day, 69,889 shares of Digi International exchanged hands as compared to its average daily volume of 60,600 shares. The stock ranged in a price between $6.90-$7.57 after having opened the day at $7.25 as compared to the previous trading day's close of $7.26.

Digi International Inc. provides machine to machine (M2M) networking hardware and solutions that enable the connection, monitoring, and control of local or remote physical assets by electronic means. Digi International has a market cap of $184.4 million and is part of the technology sector. Shares are down 40.1% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Digi International a buy, no analysts rate it a sell, and 2 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 Digi International as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from TheStreet Ratings analysis on DGII go as follows:

  • DGII 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. Along with this, the company maintains a quick ratio of 5.26, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has increased to $5.74 million or 20.53% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 4.51%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.1%. Since the same quarter one year prior, revenues slightly dropped by 1.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • DIGI INTERNATIONAL 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, DIGI INTERNATIONAL INC reported lower earnings of $0.23 versus $0.29 in the prior year. For the next year, the market is expecting a contraction of 60.9% in earnings ($0.09 versus $0.23).
  • 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 Communications Equipment industry. The net income has significantly decreased by 106.6% when compared to the same quarter one year ago, falling from $1.53 million to -$0.10 million.

You can view the full analysis from the report here:

Digi International Ratings Report

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

Qumu

(

QUMU

) was another company that pushed the Computer Hardware industry higher today. Qumu was up $0.25 (2.0%) to $12.89 on light volume. Throughout the day, 4,401 shares of Qumu exchanged hands as compared to its average daily volume of 17,400 shares. The stock ranged in a price between $12.45-$12.89 after having opened the day at $12.80 as compared to the previous trading day's close of $12.64.

Qumu Corporation operates in the enterprise video content management software and disc publishing businesses. Qumu has a market cap of $108.3 million and is part of the technology sector. Shares are down 1.2% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Qumu a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Qumu as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on QUMU 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 Computers & Peripherals industry. The net income has significantly decreased by 146.9% when compared to the same quarter one year ago, falling from -$1.95 million to -$4.82 million.
  • Net operating cash flow has significantly decreased to -$6.17 million or 222.36% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The share price of QUMU CORP has not done very well: it is down 9.78% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • QUMU CORP's earnings per share declined by 38.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, QUMU CORP continued to lose money by earning -$1.53 versus -$4.79 in the prior year. For the next year, the market is expecting a contraction of 72.5% in earnings (-$2.64 versus -$1.53).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, QUMU CORP's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here:

Qumu Ratings Report

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

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.