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.

Two out of the three major indices traded up today One out of the three major indices traded up today The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 30.21 points (-0.2%) at 16,882 as of Wednesday, July 30, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,028 issues advancing vs. 1,986 declining with 144 unchanged.

The Computer Software & Services industry as a whole closed the day up 1.1% versus the S&P 500, which was up 0.1%. Top gainers within the Computer Software & Services industry included BluePhoenix Solutions ( BPHX), up 3.5%, Intelligent Systems ( INS), up 16.8%, GSE Systems ( GVP), up 1.9%, MGT Capital Investments ( MGT), up 3.1% and Bridgeline Digital ( BLIN), up 7.1%.

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

Bridgeline Digital ( BLIN) is one of the companies that pushed the Computer Software & Services industry higher today. Bridgeline Digital was up $0.06 (7.1%) to $0.90 on light volume. Throughout the day, 1,000 shares of Bridgeline Digital exchanged hands as compared to its average daily volume of 44,300 shares. The stock ranged in a price between $0.90-$0.90 after having opened the day at $0.90 as compared to the previous trading day's close of $0.84.

Bridgeline Digital, Inc. develops iAPPS Web engagement management product platform and related digital solutions in the United States. Its iAPPS platform enables companies and developers to create Websites, Web applications, and online stores. Bridgeline Digital has a market cap of $19.5 million and is part of the services sector. Shares are down 16.0% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Bridgeline Digital a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Bridgeline Digital 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, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on BLIN go as follows:

  • BRIDGELINE DIGITAL 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, BRIDGELINE DIGITAL INC reported poor results of -$0.23 versus -$0.07 in the prior year. For the next year, the market is expecting a contraction of 39.1% in earnings (-$0.32 versus -$0.23).
  • 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 236.8% when compared to the same quarter one year ago, falling from -$0.69 million to -$2.31 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, BRIDGELINE DIGITAL INC'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 -$0.23 million or 138.55% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 26.96%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 160.00% compared to the year-earlier 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.

You can view the full analysis from the report here: Bridgeline Digital 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 $0.03 (1.9%) to $1.64 on light volume. Throughout the day, 7,802 shares of GSE Systems exchanged hands as compared to its average daily volume of 18,800 shares. The stock ranged in a price between $1.62-$1.64 after having opened the day at $1.62 as compared to the previous trading day's close of $1.61.

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 $28.4 million and is part of the services sector. Shares are up 0.6% year-to-date as of the close of trading on Tuesday. 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 feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on GVP go as follows:

  • GSE SYSTEMS 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, GSE SYSTEMS INC swung to a loss, reporting -$0.58 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 Software industry. The net income has significantly decreased by 75.2% when compared to the same quarter one year ago, falling from -$1.16 million to -$2.02 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 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 25.86%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -23.20% is significantly below that of the industry average.
  • 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. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

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 $0.14 (3.5%) to $4.12 on heavy volume. Throughout the day, 23,062 shares of BluePhoenix Solutions exchanged hands as compared to its average daily volume of 4,800 shares. The stock ranged in a price between $3.95-$4.28 after having opened the day at $4.00 as compared to the previous trading day's close of $3.98.

BluePhoenix Solutions Ltd. develops and markets enterprise legacy lifecycle information technology (IT) modernization solutions worldwide. BluePhoenix Solutions has a market cap of $46.7 million and is part of the services sector. Shares are down 11.5% year-to-date as of the close of trading on Tuesday. 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, weak operating cash flow and generally disappointing historical performance in the stock itself.

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 53.8% when compared to the same quarter one year ago, falling from -$0.60 million to -$0.92 million.
  • Net operating cash flow has decreased to -$1.68 million or 49.11% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • In its most recent trading session, BPHX 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. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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.
  • 49.55% is the gross profit margin for BLUEPHOENIX SOLUTIONS LTD which we consider to be strong. Regardless of BPHX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BPHX's net profit margin of -49.33% significantly underperformed when compared to the industry average.

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.