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 0.5% versus the S&P 500, which was unchanged. Laggards within the Computer Software & Services industry included GRAVITY ( GRVY), down 2.5%, Bridgeline Digital ( BLIN), down 2.4%, Asure Software ( ASUR), down 1.7%, Kingtone Wirelessinfo Solution ( KONE), down 2.2% and Streamline Health Solutions ( STRM), down 5.2%.

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

Streamline Health Solutions ( STRM) is one of the companies that pushed the Computer Software & Services industry lower today. Streamline Health Solutions was down $0.25 (5.2%) to $4.57 on light volume. Throughout the day, 7,788 shares of Streamline Health Solutions exchanged hands as compared to its average daily volume of 32,700 shares. The stock ranged in price between $4.53-$4.73 after having opened the day at $4.73 as compared to the previous trading day's close of $4.82.

Streamline Health Solutions, Inc. provides health information technology solutions and services for hospitals, healthcare organizations, and physician practices in the United States and Canada. Streamline Health Solutions has a market cap of $84.0 million and is part of the technology sector. Shares are down 33.8% year-to-date as of the close of trading on Tuesday. Currently there are 3 analysts who rate Streamline Health Solutions a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Streamline Health Solutions as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on STRM go as follows:

  • Net operating cash flow has decreased to -$3.94 million or 45.58% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • STRM'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 32.89%, 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, STREAMLINE HEALTH SOLUTIONS's return on equity significantly trails that of both the industry average and the S&P 500.
  • STREAMLINE HEALTH SOLUTIONS has improved earnings per share by 33.3% 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, STREAMLINE HEALTH SOLUTIONS reported poor results of -$0.95 versus -$0.47 in the prior year. This year, the market expects an improvement in earnings (-$0.20 versus -$0.95).
  • The gross profit margin for STREAMLINE HEALTH SOLUTIONS is rather high; currently it is at 69.40%. 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 -38.42% is in-line with the industry average.

You can view the full analysis from the report here: Streamline Health 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.

At the close, Asure Software ( ASUR) was down $0.09 (1.7%) to $5.08 on light volume. Throughout the day, 5,903 shares of Asure Software exchanged hands as compared to its average daily volume of 10,000 shares. The stock ranged in price between $4.92-$5.34 after having opened the day at $4.92 as compared to the previous trading day's close of $5.17.

Asure Software, Inc. provides cloud-based software-as-a-service (SaaS) time and labor management, and workspace management solutions worldwide. Asure Software has a market cap of $31.8 million and is part of the technology sector. Shares are down 5.4% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Asure Software 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 Asure Software as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on ASUR go as follows:

  • ASURE SOFTWARE 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, ASURE SOFTWARE INC continued to lose money by earning -$0.31 versus -$0.59 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus -$0.31).
  • 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 51.8% when compared to the same quarter one year prior, rising from -$1.10 million to -$0.53 million.
  • The gross profit margin for ASURE SOFTWARE INC is currently very high, coming in at 79.03%. 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 -8.12% is in-line with the industry average.
  • Net operating cash flow has declined marginally to $0.07 million or 6.57% 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.
  • The debt-to-equity ratio is very high at 4.08 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.45, which clearly demonstrates the inability to cover short-term cash needs.

You can view the full analysis from the report here: Asure Software 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.

Bridgeline Digital ( BLIN) was another company that pushed the Computer Software & Services industry lower today. Bridgeline Digital was down $0.02 (2.4%) to $0.83 on light volume. Throughout the day, 1,148 shares of Bridgeline Digital exchanged hands as compared to its average daily volume of 42,400 shares. The stock ranged in price between $0.83-$0.88 after having opened the day at $0.83 as compared to the previous trading day's close of $0.85.

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 $19.3 million and is part of the technology sector. Shares are down 16.6% 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.

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.

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 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 34.72%, 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.

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