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.

The Computer Hardware industry as a whole closed the day down 0.4% versus the S&P 500, which was down 0.5%. Laggards within the Computer Hardware industry included

Interphase

(

INPH

), down 3.8%,

Lantronix

(

LTRX

), down 1.7%,

China TechFaith Wireless Comm Tech

(

CNTF

), down 2.9%,

Xplore Technologies

(

XPLR

), down 10.5% and

Hutchinson Technology

(

HTCH

), down 3.6%.

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

China TechFaith Wireless Comm Tech

(

CNTF

) is one of the companies that pushed the Computer Hardware industry lower today. China TechFaith Wireless Comm Tech was down $0.03 (2.9%) to $1.02 on heavy volume. Throughout the day, 166,575 shares of China TechFaith Wireless Comm Tech exchanged hands as compared to its average daily volume of 86,700 shares. The stock ranged in price between $1.01-$1.08 after having opened the day at $1.08 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 $57.2 million and is part of the technology sector. Shares are down 6.2% year-to-date as of the close of trading on Tuesday.

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 56.36% 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.

At the close,

Lantronix

(

LTRX

) was down $0.03 (1.7%) to $1.76 on light volume. Throughout the day, 8,786 shares of Lantronix exchanged hands as compared to its average daily volume of 24,300 shares. The stock ranged in price between $1.75-$1.79 after having opened the day at $1.79 as compared to the previous trading day's close of $1.79.

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 $26.9 million and is part of the technology sector. Shares are down 5.3% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Lantronix 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

Lantronix

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 LTRX 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 Communications Equipment industry. The net income has significantly decreased by 95.7% when compared to the same quarter one year ago, falling from -$0.32 million to -$0.63 million.
  • Net operating cash flow has significantly decreased to -$0.79 million or 333.92% 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 33.46%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 100.00% 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.
  • LANTRONIX 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. 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, LANTRONIX INC continued to lose money by earning -$0.06 versus -$0.19 in the prior year. For the next year, the market is expecting a contraction of 91.7% in earnings (-$0.12 versus -$0.06).
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Communications Equipment industry and the overall market, LANTRONIX INC'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:

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.

Interphase

(

INPH

) was another company that pushed the Computer Hardware industry lower today. Interphase was down $0.08 (3.8%) to $2.12 on light volume. Throughout the day, 5,121 shares of Interphase exchanged hands as compared to its average daily volume of 9,900 shares. The stock ranged in price between $2.12-$2.48 after having opened the day at $2.48 as compared to the previous trading day's close of $2.20.

Interphase Corporation, an information and communications technology company, provides connectivity, interworking, and packet processing solutions in the Pacific Rim, North America, and Europe. Interphase has a market cap of $18.3 million and is part of the technology sector. Shares are down 3.1% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates

Interphase

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins and generally disappointing historical 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 INPH 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 Communications Equipment industry. The net income has significantly decreased by 1222.4% when compared to the same quarter one year ago, falling from $0.08 million to -$0.85 million.
  • The gross profit margin for INTERPHASE CORP is currently lower than what is desirable, coming in at 33.55%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -20.25% is significantly below that of 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 53.96%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1200.00% 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.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Communications Equipment industry and the overall market, INTERPHASE CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • INTERPHASE 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 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, INTERPHASE CORP continued to lose money by earning -$0.39 versus -$0.54 in the prior year.

You can view the full analysis from the report here:

Interphase 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.