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 Software & Services industry as a whole closed the day down 0.6% versus the S&P 500, which was down 0.7%. Laggards within the Computer Software & Services industry included

Vicon Industries

(

VII

), down 2.6%,

CounterPath

(

CPAH

), down 2.6%,

GSE Systems

(

GVP

), down 2.4%,

TigerLogic

(

TIGR

), down 6.7% and

Intelligent Systems

(

INS

), down 2.8%.

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

HealthStream

(

HSTM

) is one of the companies that pushed the Computer Software & Services industry lower today. HealthStream was down $0.39 (1.5%) to $25.11 on light volume. Throughout the day, 65,148 shares of HealthStream exchanged hands as compared to its average daily volume of 186,600 shares. The stock ranged in price between $25.08-$25.90 after having opened the day at $25.48 as compared to the previous trading day's close of $25.50.

HealthStream, Inc. provides suite of software-as-a-service solutions for the healthcare industry in the United States. The company operates in two segments, HealthStream Workforce Development Solutions and HealthStream Research/Patient Experience Solutions. HealthStream has a market cap of $697.4 million and is part of the technology sector. Shares are down 21.8% year-to-date as of the close of trading on Monday. Currently there are 4 analysts who rate HealthStream a buy, no analysts rate it a sell, and 2 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

HealthStream

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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity.

Highlights from TheStreet Ratings analysis on HSTM go as follows:

  • The revenue growth came in higher than the industry average of 6.1%. Since the same quarter one year prior, revenues rose by 29.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • HSTM 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, HSTM has a quick ratio of 1.94, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The net income growth from the same quarter one year ago has exceeded that of the Health Care Technology industry average, but is less than that of the S&P 500. The net income increased by 0.4% when compared to the same quarter one year prior, going from $1.94 million to $1.95 million.
  • In its most recent trading session, HSTM has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • 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. When compared to other companies in the Health Care Technology industry and the overall market, HEALTHSTREAM INC's return on equity is below that of both the industry average and the S&P 500.

You can view the full analysis from the report here:

HealthStream 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,

GSE Systems

(

GVP

) was down $0.04 (2.4%) to $1.66 on average volume. Throughout the day, 11,416 shares of GSE Systems exchanged hands as compared to its average daily volume of 12,900 shares. The stock ranged in price between $1.65-$1.72 after having opened the day at $1.66 as compared to the previous trading day's close of $1.70.

GSE Systems, Inc. provides simulation, educational, and engineering solutions and services to the nuclear and fossil electric utility industry, and the chemical and petrochemical industries worldwide. GSE Systems has a market cap of $31.3 million and is part of the technology sector. Shares are up 6.2% year-to-date as of the close of trading on Monday.

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

GSE Systems

as a

sell

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

Highlights from TheStreet Ratings analysis on GVP go as follows:

  • GSE SYSTEMS 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, GSE SYSTEMS INC swung to a loss, reporting -$0.58 versus $0.06 in the prior year.
  • 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 Software industry. The net income has significantly decreased by 75.2% when compared to the same quarter one year ago, falling from -$1.16 million to -$2.02 million.
  • 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, GSE SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for GSE SYSTEMS INC is currently lower than what is desirable, coming in at 25.86%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -23.20% is significantly below that of the industry average.
  • The revenue fell significantly faster than the industry average of 8.0%. Since the same quarter one year prior, revenues fell by 29.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here:

GSE 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.

CounterPath

(

CPAH

) was another company that pushed the Computer Software & Services industry lower today. CounterPath was down $0.03 (2.6%) to $1.13 on average volume. Throughout the day, 8,700 shares of CounterPath exchanged hands as compared to its average daily volume of 9,500 shares. The stock ranged in price between $1.10-$1.14 after having opened the day at $1.10 as compared to the previous trading day's close of $1.16.

CounterPath has a market cap of $48.1 million and is part of the technology sector. Shares are up 8.4% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate CounterPath a buy, no analysts rate it a sell, and 2 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.

Highlights from TheStreet Ratings analysis on CPAH go as follows:

You can view the full analysis from the report here:

CounterPath 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.