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.

The Computer Hardware industry as a whole closed the day down 1.0% versus the S&P 500, which was down 1.3%. Laggards within the Computer Hardware industry included

Lantronix

(

LTRX

), down 11.9%,

China TechFaith Wireless Comm Tech

(

CNTF

), down 5.7%,

Echelon

(

ELON

), down 2.8%,

Transact Technologies

(

TACT

), down 2.1% and

Xplore Technologies

(

XPLR

), down 2.2%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Echelon

(

ELON

) is one of the companies that pushed the Computer Hardware industry lower today. Echelon was down $0.04 (2.8%) to $1.40 on light volume. Throughout the day, 33,601 shares of Echelon exchanged hands as compared to its average daily volume of 93,500 shares. The stock ranged in price between $1.40-$1.50 after having opened the day at $1.42 as compared to the previous trading day's close of $1.44.

Echelon has a market cap of $62.0 million and is part of the technology sector. Shares are down 15.3% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Echelon a buy, no analysts rate it a sell, and 1 rates it a hold.

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At the close,

China TechFaith Wireless Comm Tech

(

CNTF

) was down $0.06 (5.7%) to $0.99 on average volume. Throughout the day, 103,319 shares of China TechFaith Wireless Comm Tech exchanged hands as compared to its average daily volume of 91,000 shares. The stock ranged in price between $0.99-$1.07 after having opened the day at $1.03 as compared to the previous trading day's close of $1.05.

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 $56.6 million and is part of the technology sector. Shares are down 6.2% year-to-date as of the close of trading on Thursday.

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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 45.79% 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 lower today. Lantronix was down $0.26 (11.9%) to $1.92 on heavy volume. Throughout the day, 113,137 shares of Lantronix exchanged hands as compared to its average daily volume of 20,300 shares. The stock ranged in price between $1.79-$2.05 after having opened the day at $2.05 as compared to the previous trading day's close of $2.18.

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 $32.9 million and is part of the technology sector. Shares are up 15.3% 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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on LTRX go as follows:

  • The revenue growth came in higher than the industry average of 5.7%. 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.
  • LTRX'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 25.82%, which is also worse than the performance of the S&P 500 Index. 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.
  • 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.