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 closed the day down 0.6% versus the S&P 500, which was up 0.2%. Laggards within the Technology sector included

Schmitt Industries

(

SMIT

), down 4.7%,

TSR

(

TSRI

), down 5.2%,

CounterPath

(

CPAH

), down 5.2%,

GRAVITY

(

GRVY

), down 1.8% and

Peerless Systems

(

PRLS

), down 1.9%.

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

Telekomunikasi Indonesia (Persero) Tbk

(

TLK

) is one of the companies that pushed the Technology sector lower today. Telekomunikasi Indonesia (Persero) Tbk was down $0.80 (1.7%) to $45.84 on light volume. Throughout the day, 109,696 shares of Telekomunikasi Indonesia (Persero) Tbk exchanged hands as compared to its average daily volume of 250,600 shares. The stock ranged in price between $45.67-$46.27 after having opened the day at $45.93 as compared to the previous trading day's close of $46.64.

PT Telekomunikasi Indonesia, Tbk provides network and telecommunication services to individual and home customers, companies, and institutions in worldwide. It operates through four segments: Personal, Home, Corporate, and Others. Telekomunikasi Indonesia (Persero) Tbk has a market cap of $114.1 billion and is part of the telecommunications industry. Shares are up 30.1% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Telekomunikasi Indonesia (Persero) Tbk

as a

buy

TheStreet Recommends

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on TLK go as follows:

  • The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.15, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for TELEKOMUNIKASI INDONESIA is rather high; currently it is at 59.33%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.17% is above that of the industry average.
  • TLK, with its decline in revenue, underperformed when compared the industry average of 3.5%. Since the same quarter one year prior, revenues slightly dropped by 6.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 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 Diversified Telecommunication Services industry and the overall market on the basis of return on equity, TELEKOMUNIKASI INDONESIA has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • In its most recent trading session, TLK 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. Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this company displays offset this slight negative.

You can view the full analysis from the report here:

Telekomunikasi Indonesia (Persero) Tbk 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,

Peerless Systems

(

PRLS

) was down $0.07 (1.9%) to $3.71 on heavy volume. Throughout the day, 51,502 shares of Peerless Systems exchanged hands as compared to its average daily volume of 5,100 shares. The stock ranged in price between $3.65-$3.78 after having opened the day at $3.70 as compared to the previous trading day's close of $3.78.

Peerless Systems Corporation develops and licenses software-based digital imaging and networking systems and supporting electronic technologies to original equipment manufacturers (OEMs) of digital document products located primarily in the United States and Japan. Peerless Systems has a market cap of $10.3 million and is part of the telecommunications industry. Shares are up 3.9% 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

Peerless Systems

as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on PRLS go as follows:

  • PRLS 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 49.98, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for PEERLESS SYSTEMS CORP is currently very high, coming in at 85.74%. Regardless of PRLS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PRLS's net profit margin of 9.32% is significantly lower than the industry average.
  • 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, PEERLESS SYSTEMS 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 -$0.93 million or 374.55% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here:

Peerless 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 Technology sector lower today. CounterPath was down $0.07 (5.2%) to $1.26 on heavy volume. Throughout the day, 148,517 shares of CounterPath exchanged hands as compared to its average daily volume of 8,600 shares. The stock ranged in price between $1.21-$1.40 after having opened the day at $1.40 as compared to the previous trading day's close of $1.33.

CounterPath has a market cap of $46.0 million and is part of the telecommunications industry. Shares are up 24.3% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate CounterPath a buy, 1 analyst rates it a sell, and 1 rates 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.