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 up 0.6% versus the S&P 500, which was up 1.1%. Laggards within the Technology sector included

Maxcom Telecomunicaciones SAB de CV

(

MXT

), down 2.5%,

Kingtone Wirelessinfo Solution

(

KONE

), down 3.4%,

Qualstar

(

QBAK

), down 22.3%,

One Horizon Group

(

OHGI

), down 8.1% and

Astea International

(

ATEA

), down 4.1%.

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

CGI Group

(

GIB

) is one of the companies that pushed the Technology sector lower today. CGI Group was down $0.57 (1.6%) to $33.97 on average volume. Throughout the day, 250,731 shares of CGI Group exchanged hands as compared to its average daily volume of 171,200 shares. The stock ranged in price between $33.84-$34.77 after having opened the day at $34.42 as compared to the previous trading day's close of $34.54.

CGI Group Inc., together with its subsidiaries, provides information technology (IT) and business process services. CGI Group has a market cap of $9.4 billion and is part of the internet industry. Shares are up 3.2% year-to-date as of the close of trading on Thursday. Currently there are 7 analysts who rate CGI Group a buy, 1 analyst rates it a sell, and 3 rate it a hold.

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TheStreet Ratings rates

CGI Group

as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, attractive valuation levels, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on GIB go as follows:

  • The revenue growth came in higher than the industry average of 12.4%. Since the same quarter one year prior, revenues slightly increased by 3.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the IT Services industry average. The net income increased by 26.3% when compared to the same quarter one year prior, rising from $178.17 million to $225.09 million.
  • Net operating cash flow has significantly increased by 159.66% to $345.88 million when compared to the same quarter last year. In addition, CGI GROUP INC has also vastly surpassed the industry average cash flow growth rate of -1.83%.
  • CGI GROUP INC has improved earnings per share by 26.8% 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 year. During the past fiscal year, CGI GROUP INC increased its bottom line by earning $1.43 versus $0.55 in the prior year.

You can view the full analysis from the report here:

CGI Group Ratings Report

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At the close,

Qualstar

(

QBAK

) was down $0.36 (22.3%) to $1.28 on heavy volume. Throughout the day, 353,848 shares of Qualstar exchanged hands as compared to its average daily volume of 9,900 shares. The stock ranged in price between $1.18-$1.69 after having opened the day at $1.60 as compared to the previous trading day's close of $1.64.

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 $14.6 million and is part of the internet industry. Shares are up 45.1% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

Qualstar

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 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.
  • Net operating cash flow has significantly decreased to -$2.61 million or 191.49% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • QBAK has underperformed the S&P 500 Index, declining 9.49% 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 has improved earnings per share by 33.3% 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.
  • The revenue fell significantly faster than the industry average of 9.3%. Since the same quarter one year prior, revenues fell by 24.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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.

Maxcom Telecomunicaciones SAB de CV

(

MXT

) was another company that pushed the Technology sector lower today. Maxcom Telecomunicaciones SAB de CV was down $0.03 (2.5%) to $1.32 on light volume. Throughout the day, 100 shares of Maxcom Telecomunicaciones SAB de CV exchanged hands as compared to its average daily volume of 1,000 shares. The stock ranged in price between $1.32-$1.32 after having opened the day at $1.32 as compared to the previous trading day's close of $1.35.

Maxcom Telecomunicaciones, S.A.B. de C.V., an integrated telecommunication services operator, provides voice and data services to residential and small and medium-sized business customers in Mexico. Maxcom Telecomunicaciones SAB de CV has a market cap of $609.2 million and is part of the internet industry. Shares are down 17.0% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Maxcom Telecomunicaciones SAB de CV a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates

Maxcom Telecomunicaciones SAB de CV

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.

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 MXT 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 Diversified Telecommunication Services industry and the overall market, MAXCOM TELECOMUNICACIONES SA'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 $3.08 million or 76.18% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • MXT'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 50.53%, 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.
  • MAXCOM TELECOMUNICACIONES SA 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, MAXCOM TELECOMUNICACIONES SA reported poor results of -$0.57 versus -$0.11 in the prior year.
  • 45.07% is the gross profit margin for MAXCOM TELECOMUNICACIONES SA which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, MXT's net profit margin of -3.85% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here:

Maxcom Telecomunicaciones SAB de CV 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.