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 are trading down today with the

Dow Jones Industrial Average

(

^DJI

) trading down 334.97 points (-2.0%) at 16,659 as of Thursday, Oct. 9, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 367 issues advancing vs. 2,746 declining with 91 unchanged.

The Computer Software & Services industry as a whole closed the day down 2.7% versus the S&P 500, which was down 2.1%. Top gainers within the Computer Software & Services industry included

Astea International

(

ATEA

), up 1.5%,

TSR

(

TSRI

), up 3.5%,

Authentidate

(

ADAT

), up 3.2%,

Intellicheck Mobilisa

(

IDN

), up 2.3% and

Evolving Systems

(

EVOL

), up 2.3%.

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

Evolving Systems

(

EVOL

) is one of the companies that pushed the Computer Software & Services industry higher today. Evolving Systems was up $0.21 (2.3%) to $9.22 on heavy volume. Throughout the day, 73,258 shares of Evolving Systems exchanged hands as compared to its average daily volume of 27,800 shares. The stock ranged in a price between $9.10-$9.32 after having opened the day at $9.10 as compared to the previous trading day's close of $9.01.

Evolving Systems, Inc. provides software solutions and services to the wireless, wireline, and cable markets. Evolving Systems has a market cap of $107.0 million and is part of the technology sector. Shares are down 7.5% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts who rate Evolving Systems 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

Evolving Systems

TheStreet Recommends

as a

buy

. 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, reasonable valuation levels, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on EVOL 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 37.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • EVOL'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. To add to this, EVOL has a quick ratio of 2.05, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for EVOLVING SYSTEMS INC is currently very high, coming in at 74.80%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.11% is above that of the industry average.
  • 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 84.4% when compared to the same quarter one year prior, rising from $0.91 million to $1.68 million.

You can view the full analysis from the report here:

Evolving Systems 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,

Intellicheck Mobilisa

(

IDN

) was up $0.08 (2.3%) to $3.60 on light volume. Throughout the day, 36,826 shares of Intellicheck Mobilisa exchanged hands as compared to its average daily volume of 58,900 shares. The stock ranged in a price between $3.60-$3.85 after having opened the day at $3.70 as compared to the previous trading day's close of $3.52.

Intellicheck Mobilisa, Inc. develops, integrates, and markets wireless technology and identity systems for mobile and handheld access control and security systems. Intellicheck Mobilisa has a market cap of $17.1 million and is part of the technology sector. Shares are down 12.0% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Intellicheck Mobilisa 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 Intellicheck Mobilisa 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 and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on IDN go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Electronic Equipment, Instruments & Components industry. The net income has decreased by 19.8% when compared to the same quarter one year ago, dropping from -$0.92 million to -$1.10 million.
  • IDN has underperformed the S&P 500 Index, declining 9.10% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Net operating cash flow has decreased to -$0.61 million or 18.14% when compared to the same quarter last year. Despite a decrease in cash flow of 18.14%, INTELLICHECK MOBILISA INC is in line with the industry average cash flow growth rate of -22.84%.
  • 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 Electronic Equipment, Instruments & Components industry and the overall market, INTELLICHECK MOBILISA INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • INTELLICHECK MOBILISA INC reported flat earnings per share in the most recent quarter. 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, INTELLICHECK MOBILISA INC's EPS of -$0.64 remained unchanged from the prior years' EPS of -$0.64.

You can view the full analysis from the report here:

Intellicheck Mobilisa 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.

Authentidate

(

ADAT

) was another company that pushed the Computer Software & Services industry higher today. Authentidate was up $0.02 (3.2%) to $0.65 on light volume. Throughout the day, 29,056 shares of Authentidate exchanged hands as compared to its average daily volume of 94,200 shares. The stock ranged in a price between $0.60-$0.65 after having opened the day at $0.60 as compared to the previous trading day's close of $0.63.

Authentidate Holding Corp. provides Web-based software applications, and telehealth products and services in the United States. Authentidate has a market cap of $26.6 million and is part of the technology sector. Shares are down 53.0% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Authentidate a buy, no analysts rate it a sell, and none rate it a hold.

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 26.14%, 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 14.0%. 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.

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.