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

GRAVITY

(

GRVY

), down 2.1%,

TSR

(

TSRI

), down 3.2%,

TigerLogic

(

TIGR

), down 10.8%,

QAD

(

QADB

), down 4.2% and

Authentidate

(

ADAT

), down 3.5%.

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

Veeva Systems

(

VEEV

) is one of the companies that pushed the Computer Software & Services industry lower today. Veeva Systems was down $7.12 (21.8%) to $25.58 on heavy volume. Throughout the day, 17,574,948 shares of Veeva Systems exchanged hands as compared to its average daily volume of 833,500 shares. The stock ranged in price between $24.42-$27.75 after having opened the day at $27.58 as compared to the previous trading day's close of $32.69.

Veeva Systems Inc. provides industry-specific cloud-based software solutions for the life sciences industry in North America, Europe, the Asia Pacific, and Latin America. Veeva Systems has a market cap of $1.8 billion and is part of the technology sector. Shares are up 23.8% year-to-date as of the close of trading on Tuesday. Currently there are 8 analysts who rate Veeva Systems a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates

Veeva Systems

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and premium valuation.

Highlights from TheStreet Ratings analysis on VEEV go as follows:

  • VEEV has underperformed the S&P 500 Index, declining 10.55% from its price level of one year ago. 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, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Health Care Technology industry average, but is greater than that of the S&P 500. The net income increased by 57.2% when compared to the same quarter one year prior, rising from $6.53 million to $10.26 million.
  • The gross profit margin for VEEVA SYSTEMS INC is rather high; currently it is at 64.93%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 12.23% trails the industry average.
  • Net operating cash flow has improved to $34.26 million from having none in the same quarter last year. Since the company had no net operating cash flow for the prior period, we cannot calculate a percent change in order to compare its growth rate with that of its industry average.

TheStreet Recommends

You can view the full analysis from the report here:

Veeva 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,

Authentidate

(

ADAT

) was down $0.02 (3.5%) to $0.64 on average volume. Throughout the day, 40,892 shares of Authentidate exchanged hands as compared to its average daily volume of 52,800 shares. The stock ranged in price between $0.64-$0.68 after having opened the day at $0.68 as compared to the previous trading day's close of $0.66.

Authentidate Holding Corp. provides Web-based software applications, and telehealth products and services in the United States. Authentidate has a market cap of $28.0 million and is part of the technology sector. Shares are down 28.7% 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

Authentidate

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ADAT 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 Health Care Technology industry. The net income has significantly decreased by 32.4% when compared to the same quarter one year ago, falling from -$1.58 million to -$2.09 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 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.
  • 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 33.34%, 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 23.6%. Since the same quarter one year prior, revenues slightly dropped by 7.8%. 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. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.38 is very weak and demonstrates a lack of ability to pay short-term obligations.

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.

QAD

(

QADB

) was another company that pushed the Computer Software & Services industry lower today. QAD was down $0.80 (4.2%) to $18.20 on light volume. Throughout the day, 986 shares of QAD exchanged hands as compared to its average daily volume of 1,400 shares. The stock ranged in price between $18.20-$18.28 after having opened the day at $18.28 as compared to the previous trading day's close of $19.00.

QAD Inc. provides enterprise software solutions for manufacturers in the automotive, consumer products, food and beverage, high technology, industrial products, and life sciences industries Worldwide. QAD has a market cap of $60.1 million and is part of the technology sector. Shares are up 0.2% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate QAD a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates

QAD

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, increase in stock price during the past year, reasonable valuation levels and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

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Highlights from TheStreet Ratings analysis on QADB go as follows:

  • QADB's revenue growth has slightly outpaced the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 12.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • QADB's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.04, which illustrates the ability to avoid short-term cash problems.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • 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 148.4% when compared to the same quarter one year prior, rising from $2.05 million to $5.09 million.

You can view the full analysis from the report here:

QAD 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.