3 Stocks Pushing The Computer Hardware Industry Lower

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The Computer Hardware industry as a whole closed the day down 0.2% versus the S&P 500, which was up 0.1%. Laggards within the Computer Hardware industry included Video Display ( VIDE), down 4.8%, Interphase ( INPH), down 1.6%, Acorn Energy ( ACFN), down 15.7%, Mad Catz Interactive ( MCZ), down 2.6% and Echelon ( ELON), down 6.2%.

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

Mad Catz Interactive ( MCZ) is one of the companies that pushed the Computer Hardware industry lower today. Mad Catz Interactive was down $0.02 (2.6%) to $0.69 on light volume. Throughout the day, 102,430 shares of Mad Catz Interactive exchanged hands as compared to its average daily volume of 626,300 shares. The stock ranged in price between $0.69-$0.72 after having opened the day at $0.71 as compared to the previous trading day's close of $0.71.

Mad Catz Interactive, Inc. designs, manufactures, markets, sells, and distributes accessories for videogame platforms, personal computers (PC) and Mac, smart phones, and other smart devices. Mad Catz Interactive has a market cap of $44.8 million and is part of the technology sector. Shares are up 36.0% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Mad Catz Interactive 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, generally high debt management risk, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on MCZ go as follows:

  • The debt-to-equity ratio of 1.19 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, MCZ has a quick ratio of 0.54, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • 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 Household Durables industry and the overall market, MAD CATZ INTERACTIVE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for MAD CATZ INTERACTIVE INC is currently lower than what is desirable, coming in at 25.43%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.72% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $0.62 million or 90.11% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • MAD CATZ INTERACTIVE 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, MAD CATZ INTERACTIVE INC reported poor results of -$0.18 versus -$0.04 in the prior year.

You can view the full analysis from the report here: Mad Catz Interactive Ratings Report

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At the close, Acorn Energy ( ACFN) was down $0.33 (15.7%) to $1.77 on heavy volume. Throughout the day, 763,205 shares of Acorn Energy exchanged hands as compared to its average daily volume of 181,600 shares. The stock ranged in price between $1.63-$1.88 after having opened the day at $1.65 as compared to the previous trading day's close of $2.10.

Acorn Energy, Inc., through its subsidiaries, provides technology driven solutions for energy infrastructure asset management worldwide. It offers oil and gas sensor systems, a fiber optic sensing system for the energy, commercial security, and defense markets. Acorn Energy has a market cap of $45.3 million and is part of the technology sector. Shares are down 48.4% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Acorn Energy a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Acorn Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ACFN 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 Commercial Services & Supplies industry and the overall market, ACORN ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ACORN ENERGY INC is rather low; currently it is at 16.81%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -90.18% is significantly below that of the industry average.
  • ACFN'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 72.65%, 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 company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 2.4% when compared to the same quarter one year prior, going from -$5.38 million to -$5.25 million.
  • ACORN ENERGY INC has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ACORN ENERGY INC reported poor results of -$1.60 versus -$0.94 in the prior year. This year, the market expects an improvement in earnings (-$0.56 versus -$1.60).

You can view the full analysis from the report here: Acorn Energy Ratings Report

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Interphase ( INPH) was another company that pushed the Computer Hardware industry lower today. Interphase was down $0.09 (1.6%) to $5.45 on heavy volume. Throughout the day, 14,620 shares of Interphase exchanged hands as compared to its average daily volume of 6,500 shares. The stock ranged in price between $5.41-$5.56 after having opened the day at $5.54 as compared to the previous trading day's close of $5.54.

Interphase Corporation provides connectivity, interworking, and packet processing solutions in the Pacific Rim, North America, and Europe. Interphase has a market cap of $38.0 million and is part of the technology sector. Shares are up 43.1% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Interphase as a sell. The area that we feel has been the company's primary weakness has been its disappointing return on equity.

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Highlights from TheStreet Ratings analysis on INPH go as follows:

  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Communications Equipment industry and the overall market, INTERPHASE CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • 39.57% is the gross profit margin for INTERPHASE CORP which we consider to be strong. Regardless of INPH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, INPH's net profit margin of -10.96% significantly underperformed when compared to the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.50, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that INPH's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.40 is high and demonstrates strong liquidity.
  • INTERPHASE CORP reported significant earnings per share improvement 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, INTERPHASE CORP continued to lose money by earning -$0.39 versus -$0.54 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 60.3% when compared to the same quarter one year prior, rising from -$1.19 million to -$0.47 million.

You can view the full analysis from the report here: Interphase Ratings Report

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