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 Technology sector as a whole was unchanged today versus the S&P 500, which was down 0.1%. Laggards within the Technology sector included

LookSmart

(

LOOK

), down 11.1%,

Giga-tronics

(

GIGA

), down 2.2%,

Qualstar

(

QBAK

), down 2.3%,

Net Element

(

NETE

), down 6.1% and

Wells-Gardner Electronic

(

WGA

), down 1.7%.

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

Infosys

(

INFY

) is one of the companies that pushed the Technology sector lower today. Infosys was down $1.76 (3.3%) to $51.16 on heavy volume. Throughout the day, 3,413,720 shares of Infosys exchanged hands as compared to its average daily volume of 1,473,900 shares. The stock ranged in price between $50.89-$52.68 after having opened the day at $52.54 as compared to the previous trading day's close of $52.92.

Infosys Limited provides business consulting, technology, engineering, and outsourcing services worldwide. Infosys has a market cap of $30.2 billion and is part of the computer software & services industry. Shares are down 7.0% year-to-date as of the close of trading on Tuesday. Currently there are 3 analysts who rate Infosys a buy, no analysts rate it a sell, and 6 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

Infosys

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, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on INFY go as follows:

  • The revenue growth came in higher than the industry average of 16.4%. Since the same quarter one year prior, revenues slightly increased by 7.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • INFY 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. Along with this, the company maintains a quick ratio of 4.40, which clearly demonstrates the ability to cover short-term cash needs.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • INFOSYS LTD has improved earnings per share by 9.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, INFOSYS LTD increased its bottom line by earning $3.06 versus $3.02 in the prior year. This year, the market expects an improvement in earnings ($3.26 versus $3.06).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the IT Services industry average, but is less than that of the S&P 500. The net income increased by 9.7% when compared to the same quarter one year prior, going from $444.00 million to $487.00 million.

You can view the full analysis from the report here:

Infosys 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,

Qualstar

(

QBAK

) was down $0.03 (2.3%) to $1.29 on light volume. Throughout the day, 5,218 shares of Qualstar exchanged hands as compared to its average daily volume of 13,700 shares. The stock ranged in price between $1.25-$1.29 after having opened the day at $1.25 as compared to the previous trading day's close of $1.32.

Qualstar Corporation designs, develops, manufactures, and sells power supplies and data storage systems worldwide. The company operates in two segments, Power Supplies and Tape Libraries. Qualstar has a market cap of $15.2 million and is part of the computer software & services industry. Shares are up 9.7% 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

Qualstar

as a

sell

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

Highlights from TheStreet Ratings analysis on QBAK 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 Computers & Peripherals industry and the overall market, QUALSTAR CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • QBAK has underperformed the S&P 500 Index, declining 20.99% 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.
  • QUALSTAR CORP reported significant earnings per share improvement in the most recent quarter compared to 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, QUALSTAR CORP reported poor results of -$0.85 versus -$0.35 in the prior year.
  • 45.17% is the gross profit margin for QUALSTAR CORP which we consider to be strong. 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 -7.29% is in-line with the industry average.
  • Net operating cash flow has increased to -$1.40 million or 14.57% when compared to the same quarter last year. In addition, QUALSTAR CORP has also modestly surpassed the industry average cash flow growth rate of 7.77%.

You can view the full analysis from the report here:

Qualstar 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.

LookSmart

(

LOOK

) was another company that pushed the Technology sector lower today. LookSmart was down $0.20 (11.1%) to $1.60 on light volume. Throughout the day, 922 shares of LookSmart exchanged hands as compared to its average daily volume of 5,500 shares. The stock ranged in price between $1.60-$1.63 after having opened the day at $1.63 as compared to the previous trading day's close of $1.80.

LookSmart, Ltd. provides search and display advertising network solutions in the United States, Europe, the Middle East, and Africa. LookSmart has a market cap of $10.3 million and is part of the computer software & services industry. Shares are down 13.2% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates

LookSmart

as a

sell

. Among the areas we feel are negative, one of the most important has been a 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 LOOK go as follows:

  • In its most recent trading session, LOOK 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. 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.
  • 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 Internet Software & Services industry and the overall market, LOOKSMART LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • LOOK, with its very weak revenue results, has greatly underperformed against the industry average of 21.3%. Since the same quarter one year prior, revenues plummeted by 64.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has slightly increased to -$1.26 million or 6.52% when compared to the same quarter last year. Despite an increase in cash flow, LOOKSMART LTD's cash flow growth rate is still lower than the industry average growth rate of 23.25%.
  • The gross profit margin for LOOKSMART LTD is rather high; currently it is at 55.73%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -129.71% is in-line with the industry average.

You can view the full analysis from the report here:

LookSmart 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.