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 28.64 points (-0.2%) at 16,839 as of Thursday, June 26, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,444 issues advancing vs. 1,544 declining with 166 unchanged.

The Internet industry as a whole closed the day up 0.2% versus the S&P 500, which was down 0.1%. Top gainers within the Internet industry included

Net Element

(

NETE

), up 1.7%,

Innodata

(

INOD

), up 2.4%,

Synacor

(

SYNC

), up 4.7%,

Local

(

LOCM

), up 7.1% and

Geeknet

(

GKNT

), up 2.1%.

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

Local

(

LOCM

) is one of the companies that pushed the Internet industry higher today. Local was up $0.14 (7.1%) to $2.10 on heavy volume. Throughout the day, 286,141 shares of Local exchanged hands as compared to its average daily volume of 68,800 shares. The stock ranged in a price between $1.96-$2.10 after having opened the day at $1.97 as compared to the previous trading day's close of $1.96.

Local Corporation, a technology and advertising company, provides search results to consumers who search online for local businesses, products, and services in the United States. The company operates in two segments, Paid Search and Daily Deals. Local has a market cap of $44.8 million and is part of the technology sector. Shares are up 24.1% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts who rate Local 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 Local as a

sell

. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on LOCM go as follows:

  • The gross profit margin for LOCAL CORP is currently lower than what is desirable, coming in at 25.42%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -10.80% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$0.73 million or 168.77% 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 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 Internet Software & Services industry and the overall market, LOCAL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • LOCM's debt-to-equity ratio of 0.79 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.80 is weak.
  • The stock price has risen over the past year, but it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.

You can view the full analysis from the report here:

Local 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,

Synacor

(

SYNC

) was up $0.12 (4.7%) to $2.65 on heavy volume. Throughout the day, 287,901 shares of Synacor exchanged hands as compared to its average daily volume of 51,200 shares. The stock ranged in a price between $2.53-$2.67 after having opened the day at $2.53 as compared to the previous trading day's close of $2.53.

Synacor, Inc. provides startpages and homescreens, TV Everywhere solutions, Identity Management services, and various cloud-based services across a range of devices for cable, satellite, telecom, and consumer electronics companies in the United States, and the United Kingdom. Synacor has a market cap of $68.8 million and is part of the technology sector. Shares are up 3.3% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Synacor a buy, 1 analyst rates it a sell, and 1 rates 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 Synacor 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 weak operating cash flow.

Highlights from TheStreet Ratings analysis on SYNC go as follows:

  • SYNACOR INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. 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, SYNACOR INC swung to a loss, reporting -$0.04 versus $0.14 in the prior year. For the next year, the market is expecting a contraction of 250.0% in earnings (-$0.14 versus -$0.04).
  • 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 Internet Software & Services industry. The net income has significantly decreased by 7714.8% when compared to the same quarter one year ago, falling from $0.03 million to -$2.06 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 Internet Software & Services industry and the overall market, SYNACOR INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$1.17 million or 56.30% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • This stock's share value has moved by only 17.75% over the past year. 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.

You can view the full analysis from the report here:

Synacor 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.

Innodata

(

INOD

) was another company that pushed the Internet industry higher today. Innodata was up $0.07 (2.4%) to $2.97 on heavy volume. Throughout the day, 29,155 shares of Innodata exchanged hands as compared to its average daily volume of 16,300 shares. The stock ranged in a price between $2.92-$3.14 after having opened the day at $2.98 as compared to the previous trading day's close of $2.90.

Innodata Inc. provides business process, information technology, and professional services that are focused on digital enablement. The company operates in two segments, Content Services (CS) and Innodata Advanced Data Solutions (IADS). Innodata has a market cap of $75.2 million and is part of the technology sector. Shares are up 18.4% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Innodata a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Innodata 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on INOD go as follows:

  • INOD's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.84, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has increased to $4.33 million or 38.27% when compared to the same quarter last year. In addition, INNODATA INC has also vastly surpassed the industry average cash flow growth rate of -20.41%.
  • INNODATA INC reported flat earnings per share in the most recent quarter. 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, INNODATA INC swung to a loss, reporting -$0.43 versus $0.29 in the prior year. This year, the market expects an improvement in earnings ($0.02 versus -$0.43).
  • 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 IT Services industry and the overall market, INNODATA INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the IT Services industry. The net income has significantly decreased by 40.2% when compared to the same quarter one year ago, falling from $0.32 million to $0.19 million.

You can view the full analysis from the report here:

Innodata 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.