3 Stocks Pushing The Computer Hardware Industry Lower

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The Computer Hardware industry as a whole closed the day down 0.9% versus the S&P 500, which was down 0.6%. Laggards within the Computer Hardware industry included Overland Storage ( OVRL), down 3.7%, Xplore Technologies ( XPLR), down 1.9%, Lantronix ( LTRX), down 4.3%, Acorn Energy ( ACFN), down 2.3% and Hutchinson Technology ( HTCH), down 2.2%.

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

Acorn Energy ( ACFN) is one of the companies that pushed the Computer Hardware industry lower today. Acorn Energy was down $0.04 (2.3%) to $1.72 on average volume. Throughout the day, 253,264 shares of Acorn Energy exchanged hands as compared to its average daily volume of 194,200 shares. The stock ranged in price between $1.69-$1.81 after having opened the day at $1.77 as compared to the previous trading day's close of $1.76.

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 $46.6 million and is part of the technology sector. Shares are down 48.4% year-to-date as of the close of trading on Tuesday. 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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At the close, Lantronix ( LTRX) was down $0.08 (4.3%) to $1.77 on light volume. Throughout the day, 14,450 shares of Lantronix exchanged hands as compared to its average daily volume of 137,900 shares. The stock ranged in price between $1.76-$1.83 after having opened the day at $1.83 as compared to the previous trading day's close of $1.85.

Lantronix, Inc. designs, develops, markets, and sells networking and communications products with a focus on the convergence of mobility with machine-to-machine systems. The company provides solutions that enable machines, devices, and sensors to be securely accessed, managed, and controlled. Lantronix has a market cap of $26.0 million and is part of the technology sector. Shares are up 18.2% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Lantronix a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Lantronix as a sell. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

Highlights from TheStreet Ratings analysis on LTRX go as follows:

  • 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 Communications Equipment industry and the overall market, LANTRONIX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • LTRX, with its decline in revenue, slightly underperformed the industry average of 3.5%. Since the same quarter one year prior, revenues slightly dropped by 4.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • The gross profit margin for LANTRONIX INC is rather high; currently it is at 51.94%. 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 -1.12% is in-line with the industry average.
  • LANTRONIX INC 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, LANTRONIX INC continued to lose money by earning -$0.19 versus -$0.28 in the prior year. This year, the market expects an improvement in earnings (-$0.03 versus -$0.19).

You can view the full analysis from the report here: Lantronix 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.

Overland Storage ( OVRL) was another company that pushed the Computer Hardware industry lower today. Overland Storage was down $0.11 (3.7%) to $2.89 on heavy volume. Throughout the day, 60,895 shares of Overland Storage exchanged hands as compared to its average daily volume of 18,900 shares. The stock ranged in price between $2.84-$3.10 after having opened the day at $3.05 as compared to the previous trading day's close of $3.00.

Overland Storage, Inc. provides unified data management and data protection solutions worldwide. Overland Storage has a market cap of $51.5 million and is part of the technology sector. Shares are down 38.1% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Overland Storage a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Overland Storage as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, 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 OVRL go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Computers & Peripherals industry. The net income has decreased by 1.0% when compared to the same quarter one year ago, dropping from -$4.27 million to -$4.32 million.
  • Net operating cash flow has decreased to -$3.76 million or 20.81% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • OVRL'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 53.95%, 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.
  • OVRL, with its decline in revenue, underperformed when compared the industry average of 4.2%. Since the same quarter one year prior, revenues fell by 15.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • 37.53% is the gross profit margin for OVERLAND STORAGE INC which we consider to be strong. Regardless of OVRL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, OVRL's net profit margin of -40.57% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Overland Storage 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.

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