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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 127.73 points (-0.8%) at 16,384 as of Tuesday, May 20, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 774 issues advancing vs. 2,216 declining with 147 unchanged.

The Computer Software & Services industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.5%. Top gainers within the Computer Software & Services industry included BluePhoenix Solutions ( BPHX), up 1.9%, GSE Systems ( GVP), up 3.0%, QAD ( QADB), up 1.7%, PAR Technology ( PAR), up 2.8% and CSP ( CSPI), up 2.4%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

QAD ( QADB) is one of the companies that pushed the Computer Software & Services industry higher today. QAD was up $0.29 (1.7%) to $16.99 on light volume. Throughout the day, 2,210 shares of QAD exchanged hands as compared to its average daily volume of 3,300 shares. The stock ranged in a price between $16.72-$17.15 after having opened the day at $16.75 as compared to the previous trading day's close of $16.70.

QAD Inc. provides enterprise software solutions for manufacturers in the automotive, consumer products, food and beverage, high technology, industrial products, and life sciences industries Worldwide. QAD has a market cap of $53.0 million and is part of the technology sector. Shares are up 4.3% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates QAD a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates QAD as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on QADB go as follows:

  • QADB's revenue growth has slightly outpaced the industry average of 6.6%. Since the same quarter one year prior, revenues rose by 11.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 116.66% and other important driving factors, this stock has surged by 57.84% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 116.1% when compared to the same quarter one year prior, rising from $2.01 million to $4.35 million.
  • Net operating cash flow has significantly increased by 136.36% to $12.57 million when compared to the same quarter last year. In addition, QAD INC has also vastly surpassed the industry average cash flow growth rate of 9.53%.

You can view the full analysis from the report here: QAD 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, GSE Systems ( GVP) was up $0.05 (3.0%) to $1.74 on heavy volume. Throughout the day, 44,639 shares of GSE Systems exchanged hands as compared to its average daily volume of 12,400 shares. The stock ranged in a price between $1.65-$1.80 after having opened the day at $1.75 as compared to the previous trading day's close of $1.69.

GSE Systems, Inc. provides simulation, educational, and engineering solutions and services to the nuclear and fossil electric utility industry, and the chemical and petrochemical industries worldwide. GSE Systems has a market cap of $29.7 million and is part of the technology sector. Shares are up 3.8% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate GSE Systems a buy, no analysts rate it a sell, and none 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 GSE Systems as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on GVP 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 Software industry and the overall market, GSE SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for GSE SYSTEMS INC is currently lower than what is desirable, coming in at 29.73%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.32% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$2.51 million or 93.58% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • In its most recent trading session, GVP 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. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • GSE SYSTEMS INC 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, GSE SYSTEMS INC swung to a loss, reporting -$0.58 versus $0.06 in the prior year.

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

BluePhoenix Solutions ( BPHX) was another company that pushed the Computer Software & Services industry higher today. BluePhoenix Solutions was up $0.08 (1.9%) to $4.23 on heavy volume. Throughout the day, 2,000 shares of BluePhoenix Solutions exchanged hands as compared to its average daily volume of 1,100 shares. The stock ranged in a price between $4.15-$4.24 after having opened the day at $4.22 as compared to the previous trading day's close of $4.15.

BluePhoenix Solutions Ltd. develops and markets enterprise legacy lifecycle information technology (IT) modernization solutions worldwide. BluePhoenix Solutions has a market cap of $48.7 million and is part of the technology sector. Shares are down 7.6% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate BluePhoenix Solutions a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates BluePhoenix Solutions as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and weak operating cash flow.

Highlights from TheStreet Ratings analysis on BPHX go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 275.2% when compared to the same quarter one year ago, falling from -$0.38 million to -$1.44 million.
  • Net operating cash flow has significantly decreased to -$1.24 million or 337.80% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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 Software industry and the overall market, BLUEPHOENIX SOLUTIONS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • 46.08% is the gross profit margin for BLUEPHOENIX SOLUTIONS LTD 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, BPHX's net profit margin of -70.37% significantly underperformed when compared to the industry average.
  • The revenue fell significantly faster than the industry average of 6.6%. Since the same quarter one year prior, revenues fell by 33.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

You can view the full analysis from the report here: BluePhoenix Solutions 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.

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.