3 Stocks Pushing The Computer Software & Services Industry Lower

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 Computer Software & Services industry as a whole closed the day down 0.4% versus the S&P 500, which was up 0.1%. Laggards within the Computer Software & Services industry included CounterPath ( CPAH), down 4.6%, TigerLogic ( TIGR), down 6.2%, Kingtone Wirelessinfo Solution ( KONE), down 2.2%, PAR Technology ( PAR), down 2.4% and Authentidate ( ADAT), down 5.0%.

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

Authentidate ( ADAT) is one of the companies that pushed the Computer Software & Services industry lower today. Authentidate was down $0.04 (5.0%) to $0.75 on average volume. Throughout the day, 149,357 shares of Authentidate exchanged hands as compared to its average daily volume of 102,500 shares. The stock ranged in price between $0.74-$0.79 after having opened the day at $0.79 as compared to the previous trading day's close of $0.79.

Authentidate Holding Corp. provides Web-based software applications, and telehealth products and services in the United States. Authentidate has a market cap of $30.5 million and is part of the technology sector. Shares are down 40.7% year-to-date as of the close of trading on Tuesday.

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 Authentidate as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ADAT go as follows:

  • ADAT'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 34.43%, 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'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 Health Care Technology industry and the overall market, AUTHENTIDATE HOLDING CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • AUTHENTIDATE HOLDING CORP has improved earnings per share by 36.4% 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, AUTHENTIDATE HOLDING CORP reported poor results of -$0.45 versus -$0.36 in the prior year.
  • 35.52% is the gross profit margin for AUTHENTIDATE HOLDING CORP which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -107.93% is in-line with the industry average.
  • Net operating cash flow has increased to -$0.89 million or 41.27% when compared to the same quarter last year. In addition, AUTHENTIDATE HOLDING CORP has also vastly surpassed the industry average cash flow growth rate of -30.98%.

You can view the full analysis from the report here: Authentidate 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, PAR Technology ( PAR) was down $0.11 (2.4%) to $4.39 on heavy volume. Throughout the day, 49,184 shares of PAR Technology exchanged hands as compared to its average daily volume of 14,400 shares. The stock ranged in price between $4.39-$4.53 after having opened the day at $4.47 as compared to the previous trading day's close of $4.50.

PAR Technology Corporation, through its subsidiaries, primarily provides technology solutions to businesses and organizations in the hospitality industry worldwide. The company operates in two segments: Hospitality and Government. PAR Technology has a market cap of $71.5 million and is part of the technology sector. Shares are down 17.4% year-to-date as of the close of trading on Tuesday.

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 PAR Technology as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and feeble growth in the company's earnings per share.

Highlights from TheStreet Ratings analysis on PAR go as follows:

  • PAR's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
  • PAR, with its decline in revenue, underperformed when compared the industry average of 6.1%. Since the same quarter one year prior, revenues fell by 15.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for PAR TECHNOLOGY CORP is rather low; currently it is at 21.25%. Regardless of PAR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -1.74% trails the industry average.
  • 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 157.6% when compared to the same quarter one year ago, falling from -$0.38 million to -$0.99 million.

You can view the full analysis from the report here: PAR Technology 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.

CounterPath ( CPAH) was another company that pushed the Computer Software & Services industry lower today. CounterPath was down $0.06 (4.6%) to $1.15 on light volume. Throughout the day, 900 shares of CounterPath exchanged hands as compared to its average daily volume of 25,300 shares. The stock ranged in price between $1.13-$1.20 after having opened the day at $1.13 as compared to the previous trading day's close of $1.21.

CounterPath has a market cap of $51.5 million and is part of the technology sector. Shares are up 14.0% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate CounterPath a buy, no analysts rate it a sell, and 2 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.

Highlights from TheStreet Ratings analysis on CPAH go as follows:

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

More from Markets

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%