3 Stocks Pushing The Computer Software & Services Industry Lower

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The Computer Software & Services industry as a whole closed the day up 1.2% versus the S&P 500, which was up 0.3%. Laggards within the Computer Software & Services industry included ARI Network Services ( ARIS), down 1.8%, Mam Software Group ( MAMS), down 6.5%, ChyronHego ( CHYR), down 5.6%, Evolving Systems ( EVOL), down 1.6% and CYREN ( CYRN), down 1.6%.

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

CYREN ( CYRN) is one of the companies that pushed the Computer Software & Services industry lower today. CYREN was down $0.05 (1.6%) to $2.99 on light volume. Throughout the day, 43,595 shares of CYREN exchanged hands as compared to its average daily volume of 101,100 shares. The stock ranged in price between $2.97-$3.10 after having opened the day at $3.03 as compared to the previous trading day's close of $3.04.

CYREN Ltd., together with its subsidiaries, provides Internet security technology and cloud-based services in Israel, North America, Europe, Asia, and internationally. It offers messaging, antivirus, and Web security solutions. CYREN has a market cap of $83.4 million and is part of the technology sector. Shares are down 2.2% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate CYREN a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates CYREN 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, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on CYRN go as follows:

  • CYREN LTD 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, CYREN LTD swung to a loss, reporting -$0.37 versus $0.06 in the prior year.
  • 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 Internet Software & Services industry. The net income has significantly decreased by 70.1% when compared to the same quarter one year ago, falling from -$1.26 million to -$2.14 million.
  • 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 Internet Software & Services industry and the overall market, CYREN LTD'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 -$2.39 million or 1480.79% 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 gross profit margin for CYREN LTD is currently very high, coming in at 81.41%. Regardless of CYRN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CYRN's net profit margin of -26.47% significantly underperformed when compared to the industry average.

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

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At the close, Evolving Systems ( EVOL) was down $0.13 (1.6%) to $7.74 on light volume. Throughout the day, 9,159 shares of Evolving Systems exchanged hands as compared to its average daily volume of 24,100 shares. The stock ranged in price between $7.67-$7.81 after having opened the day at $7.81 as compared to the previous trading day's close of $7.87.

Evolving Systems, Inc. provides software solutions and services to the wireless, wireline, and cable markets. Evolving Systems has a market cap of $92.4 million and is part of the technology sector. Shares are down 18.5% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts who rate Evolving Systems a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Evolving Systems as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from TheStreet Ratings analysis on EVOL go as follows:

  • Compared to its closing price of one year ago, EVOL's share price has jumped by 32.95%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • EVOL's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, EVOL has a quick ratio of 1.97, which demonstrates the ability of the company to cover short-term liquidity needs.
  • EVOL, with its decline in revenue, underperformed when compared the industry average of 6.6%. Since the same quarter one year prior, revenues slightly dropped by 4.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • 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 44.1% when compared to the same quarter one year ago, falling from $1.44 million to $0.80 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Software industry and the overall market, EVOLVING SYSTEMS INC's return on equity is below that of both the industry average and the S&P 500.

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

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ChyronHego ( CHYR) was another company that pushed the Computer Software & Services industry lower today. ChyronHego was down $0.13 (5.6%) to $2.16 on average volume. Throughout the day, 42,806 shares of ChyronHego exchanged hands as compared to its average daily volume of 50,800 shares. The stock ranged in price between $2.14-$2.33 after having opened the day at $2.33 as compared to the previous trading day's close of $2.29.

ChyronHego Corporation provides software and hardware products and solutions that are designed to provide broadcast-quality, real-time, graphics creation, enhancement, and playout for television stations, networks, video production, and post-production markets worldwide. ChyronHego has a market cap of $77.1 million and is part of the technology sector. Shares are up 8.0% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts who rate ChyronHego a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates ChyronHego as a sell. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time.

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Highlights from TheStreet Ratings analysis on CHYR 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 253.5% when compared to the same quarter one year ago, falling from -$0.92 million to -$3.24 million.
  • 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 Electronic Equipment, Instruments & Components industry and the overall market, CHYRONHEGO CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHYRONHEGO CORP is rather high; currently it is at 61.29%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, CHYR's net profit margin of -25.68% significantly underperformed when compared to the industry average.
  • CHYRONHEGO CORP 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. 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, CHYRONHEGO CORP continued to lose money by earning -$0.30 versus -$1.31 in the prior year. This year, the market expects an improvement in earnings ($0.06 versus -$0.30).
  • Compared to its closing price of one year ago, CHYR's share price has jumped by 44.44%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in CHYR do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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

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