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 traded up today with the

Dow Jones Industrial Average

(

^DJI

) trading up 19 points (0.1%) at 16,400 as of Monday, Oct. 20, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,294 issues advancing vs. 815 declining with 107 unchanged.

The Computer Hardware industry as a whole closed the day down 0.1% versus the S&P 500, which was up 0.9%. Top gainers within the Computer Hardware industry included

Qumu

(

QUMU

), up 2.0%,

Imation

(

IMN

), up 2.1%,

Digi International

(

DGII

), up 1.9%,

Dot Hill Systems

(

HILL

), up 1.8% and

Black Box

(

BBOX

), up 3.4%.

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

Digi International

(

DGII

) is one of the companies that pushed the Computer Hardware industry higher today. Digi International was up $0.15 (1.9%) to $7.90 on average volume. Throughout the day, 70,600 shares of Digi International exchanged hands as compared to its average daily volume of 62,600 shares. The stock ranged in a price between $7.72-$7.91 after having opened the day at $7.74 as compared to the previous trading day's close of $7.75.

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 $194.3 million and is part of the technology sector. Shares are down 36.1% 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

TheStreet Recommends

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 4.96%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 3.8%. 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.

At the close,

Imation

(

IMN

) was up $0.06 (2.1%) to $2.95 on light volume. Throughout the day, 45,398 shares of Imation exchanged hands as compared to its average daily volume of 118,700 shares. The stock ranged in a price between $2.90-$2.95 after having opened the day at $2.90 as compared to the previous trading day's close of $2.89.

Imation Corp., together with its subsidiaries, operates as a data storage and data security company worldwide. The company operates in two segments, Consumer Storage and Accessories (CSA), and Tiered Storage and Security Solutions (TSS). Imation has a market cap of $127.3 million and is part of the technology sector. Shares are down 38.2% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Imation a buy, no analysts rate 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 Imation as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, 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 IMN 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 319.6% when compared to the same quarter one year ago, falling from -$5.10 million to -$21.40 million.
  • The gross profit margin for IMATION CORP is rather low; currently it is at 22.00%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -11.98% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$11.30 million or 969.23% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 26.67%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1100.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • IMATION CORP 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. 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, IMATION CORP continued to lose money by earning -$0.61 versus -$8.73 in the prior year. For the next year, the market is expecting a contraction of 108.2% in earnings (-$1.27 versus -$0.61).

You can view the full analysis from the report here:

Imation 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 $0.24 (2.0%) to $12.49 on heavy volume. Throughout the day, 127,643 shares of Qumu exchanged hands as compared to its average daily volume of 15,900 shares. The stock ranged in a price between $12.17-$12.49 after having opened the day at $12.25 as compared to the previous trading day's close of $12.25.

Qumu Corporation operates in the enterprise video content management software and disc publishing businesses. Qumu has a market cap of $109.3 million and is part of the technology sector. Shares are down 4.3% 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.
  • In its most recent trading session, QUMU has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.