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 191 points (1.1%) at 17,512 as of Friday, Jan. 16, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,533 issues advancing vs. 578 declining with 102 unchanged.

The Computer Hardware industry as a whole closed the day up 1.1% versus the S&P 500, which was up 1.3%. Top gainers within the Computer Hardware industry included

Dataram

(

DRAM

), up 10.6%,

Lantronix

(

LTRX

), up 2.9%,

China TechFaith Wireless Comm Tech

(

CNTF

), up 2.9%,

Astro-Med

(

ALOT

), up 1.8% and

Transact Technologies

(

TACT

), up 2.2%.

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

Transact Technologies

(

TACT

) is one of the companies that pushed the Computer Hardware industry higher today. Transact Technologies was up $0.13 (2.2%) to $5.99 on light volume. Throughout the day, 11,860 shares of Transact Technologies exchanged hands as compared to its average daily volume of 27,900 shares. The stock ranged in a price between $5.75-$6.13 after having opened the day at $6.13 as compared to the previous trading day's close of $5.86.

TransAct Technologies Incorporated designs, develops, manufactures, and sells transaction-based and specialty printers. Transact Technologies has a market cap of $49.2 million and is part of the technology sector. Shares are up 7.1% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Transact Technologies 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 Transact Technologies 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, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on TACT go as follows:

  • TACT 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. To add to this, TACT has a quick ratio of 1.99, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 69.10% to -$0.39 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 35.06%.
  • 42.15% is the gross profit margin for TRANSACT TECHNOLOGIES INC which we consider to be strong. Regardless of TACT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TACT's net profit margin of 0.37% is significantly lower than the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 52.47%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 94.11% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, TACT is still more expensive than most of the other companies in its industry.
  • 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. In comparison to the other companies in the Computers & Peripherals industry and the overall market, TRANSACT TECHNOLOGIES INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.

You can view the full analysis from the report here:

Transact Technologies 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,

China TechFaith Wireless Comm Tech

(

CNTF

) was up $0.03 (2.9%) to $1.07 on light volume. Throughout the day, 37,332 shares of China TechFaith Wireless Comm Tech exchanged hands as compared to its average daily volume of 88,900 shares. The stock ranged in a price between $1.04-$1.08 after having opened the day at $1.06 as compared to the previous trading day's close of $1.04.

China Techfaith Wireless Communication Technology Limited is engaged in the original design, development, and sale of mobile handsets in the People's Republic of China and internationally. China TechFaith Wireless Comm Tech has a market cap of $56.1 million and is part of the technology sector. Shares are down 7.1% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate China TechFaith Wireless Comm Tech 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 China TechFaith Wireless Comm Tech as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on CNTF 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 1878.7% when compared to the same quarter one year ago, falling from $0.26 million to -$4.59 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Computers & Peripherals industry and the overall market, CHINA TECHFAITH WIRELESS-ADR's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHINA TECHFAITH WIRELESS-ADR is currently extremely low, coming in at 8.76%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -20.75% is significantly below that of the industry average.
  • This stock's share value has moved by only 39.25% over the past year. 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.
  • CHINA TECHFAITH WIRELESS-ADR's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, CHINA TECHFAITH WIRELESS-ADR continued to lose money by earning -$0.05 versus -$0.06 in the prior year.

You can view the full analysis from the report here:

China TechFaith Wireless Comm Tech 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.

Lantronix

(

LTRX

) was another company that pushed the Computer Hardware industry higher today. Lantronix was up $0.06 (2.9%) to $2.12 on average volume. Throughout the day, 19,229 shares of Lantronix exchanged hands as compared to its average daily volume of 22,200 shares. The stock ranged in a price between $2.10-$2.17 after having opened the day at $2.10 as compared to the previous trading day's close of $2.06.

Lantronix, Inc. designs, develops, markets, and sells networking and communications products in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Lantronix has a market cap of $30.5 million and is part of the technology sector. Shares are up 9.0% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate Lantronix a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Lantronix as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from TheStreet Ratings analysis on LTRX go as follows:

  • The revenue growth came in higher than the industry average of 5.6%. Since the same quarter one year prior, revenues slightly increased by 6.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • LANTRONIX INC reported flat earnings per share in the most recent quarter. 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, LANTRONIX INC continued to lose money by earning -$0.06 versus -$0.19 in the prior year. This year, the market expects an improvement in earnings (-$0.04 versus -$0.06).
  • LTRX's debt-to-equity ratio is very low at 0.00 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 0.99 is somewhat weak and could be cause for future problems.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Communications Equipment industry average. The net income increased by 1.9% when compared to the same quarter one year prior, going from -$0.27 million to -$0.26 million.
  • Net operating cash flow has significantly decreased to $0.21 million or 76.04% 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.

You can view the full analysis from the report here:

Lantronix 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.