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.

Two out of the three major indices are trading lower today with the

Dow Jones Industrial Average

(

^DJI

) trading down 55.58 points (-0.3%) at 16,927 as of Tuesday, July 29, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,583 issues advancing vs. 1,391 declining with 165 unchanged.

The Computer Software & Services industry as a whole closed the day up 0.3% versus the S&P 500, which was down 0.3%. Top gainers within the Computer Software & Services industry included

GRAVITY

(

GRVY

), up 2.0%,

MGT Capital Investments

(

MGT

), up 1.6%,

Asure Software

(

ASUR

), up 6.2%,

CollabRx

(

CLRX

), up 2.5% and

Authentidate

(

ADAT

), up 1.8%.

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

Authentidate

(

ADAT

) is one of the companies that pushed the Computer Software & Services industry higher today. Authentidate was up $0.01 (1.8%) to $0.57 on light volume. Throughout the day, 23,516 shares of Authentidate exchanged hands as compared to its average daily volume of 127,100 shares. The stock ranged in a price between $0.55-$0.58 after having opened the day at $0.58 as compared to the previous trading day's close of $0.56.

Authentidate Holding Corp. provides Web-based software applications, and telehealth products and services in the United States. Authentidate has a market cap of $20.7 million and is part of the technology sector. Shares are down 58.2% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Authentidate 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 Authentidate as a

sell

. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ADAT go as follows:

  • Net operating cash flow has decreased to -$1.53 million or 21.62% 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.
  • The gross profit margin for AUTHENTIDATE HOLDING CORP is currently lower than what is desirable, coming in at 31.56%. Regardless of ADAT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ADAT's net profit margin of -129.59% significantly underperformed when compared to the industry average.
  • ADAT's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 34.03%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
  • 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 Health Care Technology industry and the overall market, AUTHENTIDATE HOLDING CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • AUTHENTIDATE HOLDING CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, AUTHENTIDATE HOLDING CORP reported poor results of -$0.45 versus -$0.36 in the prior year.

You can view the full analysis from the report here:

Authentidate 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,

CollabRx

(

CLRX

) was up $0.04 (2.5%) to $1.62 on heavy volume. Throughout the day, 146,552 shares of CollabRx exchanged hands as compared to its average daily volume of 44,100 shares. The stock ranged in a price between $1.54-$1.63 after having opened the day at $1.58 as compared to the previous trading day's close of $1.58.

CollabRx, Inc. provides cloud-based expert systems to inform healthcare decision-making. The company's cloud-based expert systems provide clinical knowledge to institutions, physicians, researchers, and patients for genomics-based medicine in cancer. CollabRx has a market cap of $4.6 million and is part of the technology sector. Shares are down 58.7% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates CollabRx 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 CollabRx as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on CLRX go as follows:

  • 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 Health Care Technology industry and the overall market, COLLABRX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Looking at the price performance of CLRX's shares over the past 12 months, there is not much good news to report: the stock is down 51.70%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than 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.
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Health Care Technology industry average, but is less than that of the S&P 500. The net income has decreased by 17.0% when compared to the same quarter one year ago, dropping from -$0.81 million to -$0.95 million.
  • CLRX, with its very weak revenue results, has greatly underperformed against the industry average of 13.3%. Since the same quarter one year prior, revenues plummeted by 70.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • COLLABRX INC's earnings per share declined by 13.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COLLABRX INC continued to lose money by earning -$1.78 versus -$2.15 in the prior year. This year, the market expects an improvement in earnings (-$1.58 versus -$1.78).

You can view the full analysis from the report here:

CollabRx 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.

Asure Software

(

ASUR

) was another company that pushed the Computer Software & Services industry higher today. Asure Software was up $0.31 (6.2%) to $5.34 on heavy volume. Throughout the day, 94,794 shares of Asure Software exchanged hands as compared to its average daily volume of 8,300 shares. The stock ranged in a price between $5.03-$5.34 after having opened the day at $5.03 as compared to the previous trading day's close of $5.03.

Asure Software, Inc. provides cloud-based software-as-a-service (SaaS) time and labor management, and workspace management solutions worldwide. Asure Software has a market cap of $30.4 million and is part of the technology sector. Shares are down 10.4% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Asure Software a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Asure Software as a

hold

. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on ASUR go as follows:

  • ASURE SOFTWARE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ASURE SOFTWARE INC continued to lose money by earning -$0.31 versus -$0.59 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus -$0.31).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 51.8% when compared to the same quarter one year prior, rising from -$1.10 million to -$0.53 million.
  • The gross profit margin for ASURE SOFTWARE INC is currently very high, coming in at 79.03%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -8.12% is in-line with the industry average.
  • Net operating cash flow has declined marginally to $0.07 million or 6.57% 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.
  • The debt-to-equity ratio is very high at 4.08 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.45, which clearly demonstrates the inability to cover short-term cash needs.

You can view the full analysis from the report here:

Asure Software 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.