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 Software & Services industry as a whole closed the day up 0.6% versus the S&P 500, which was up 0.9%. Top gainers within the Computer Software & Services industry included

Kingtone Wirelessinfo Solution

(

KONE

), up 5.6%,

Asure Software

(

ASUR

), up 7.0%,

Authentidate

(

ADAT

), up 1.6%,

Sonic Foundry

(

SOFO

), up 8.1% and

FalconStor Software

(

FALC

), up 1.9%.

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

Sonic Foundry

(

SOFO

) is one of the companies that pushed the Computer Software & Services industry higher today. Sonic Foundry was up $0.74 (8.1%) to $9.93 on light volume. Throughout the day, 4,058 shares of Sonic Foundry exchanged hands as compared to its average daily volume of 5,800 shares. The stock ranged in a price between $9.07-$9.98 after having opened the day at $9.07 as compared to the previous trading day's close of $9.19.

Sonic Foundry, Inc. provides enterprise solutions and services for the Web communications market in the United States, Europe, the Middle East, Asia, and internationally. Sonic Foundry has a market cap of $41.2 million and is part of the technology sector. Shares are down 5.5% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Sonic Foundry 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 Sonic Foundry as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on SOFO go as follows:

  • The revenue growth came in higher than the industry average of 11.5%. Since the same quarter one year prior, revenues rose by 40.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.42, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.88 is weak.
  • 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 Software industry and the overall market, SONIC FOUNDRY 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 -$0.10 million or 166.66% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here:

Sonic Foundry 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,

Authentidate

(

ADAT

) was up $0.01 (1.6%) to $0.63 on light volume. Throughout the day, 9,083 shares of Authentidate exchanged hands as compared to its average daily volume of 84,600 shares. The stock ranged in a price between $0.62-$0.67 after having opened the day at $0.66 as compared to the previous trading day's close of $0.62.

Authentidate Holding Corp. provides Web-based software applications, and telehealth products and services in the United States. Authentidate has a market cap of $27.4 million and is part of the technology sector. Shares are down 53.7% year-to-date as of the close of trading on Friday. 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 disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ADAT 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, AUTHENTIDATE HOLDING CORP'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 -$1.14 million or 58.85% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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 39.45%, 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 revenue fell significantly faster than the industry average of 18.0%. Since the same quarter one year prior, revenues fell by 25.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • ADAT 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. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.71 is somewhat weak and could be cause for future problems.

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.

Asure Software

(

ASUR

) was another company that pushed the Computer Software & Services industry higher today. Asure Software was up $0.34 (7.0%) to $5.18 on light volume. Throughout the day, 158 shares of Asure Software exchanged hands as compared to its average daily volume of 9,300 shares. The stock ranged in a price between $5.18-$5.18 after having opened the day at $5.18 as compared to the previous trading day's close of $4.84.

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 $28.8 million and is part of the technology sector. Shares are down 14.1% year-to-date as of the close of trading on Friday. 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 compelling growth in net income, revenue growth and expanding profit margins. 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 ($0.14 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 102.6% when compared to the same quarter one year prior, rising from -$0.57 million to $0.02 million.
  • The gross profit margin for ASURE SOFTWARE INC is currently very high, coming in at 81.84%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, ASUR's net profit margin of 0.22% significantly trails the industry average.
  • Net operating cash flow has declined marginally to $0.68 million or 6.11% 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 3.98 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 0.43, 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.