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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 up 0.3%. Laggards within the Computer Software & Services industry included One Horizon Group ( OHGI), down 2.3%, Cover-All Technologies ( COVR), down 3.2%, TigerLogic ( TIGR), down 7.3%, Intelligent Systems ( INS), down 2.8% and GSE Systems ( GVP), down 5.4%.

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

Manhattan Associates ( MANH) is one of the companies that pushed the Computer Software & Services industry lower today. Manhattan Associates was down $0.52 (1.7%) to $29.44 on average volume. Throughout the day, 524,409 shares of Manhattan Associates exchanged hands as compared to its average daily volume of 435,600 shares. The stock ranged in price between $29.29-$29.90 after having opened the day at $29.90 as compared to the previous trading day's close of $29.96.

Manhattan Associates, Inc. develops, sells, deploys, services, and maintains supply chain commerce software solutions for retailers, wholesalers, manufacturers, governments, and other organizations to enhance their supply chain operations from planning through execution. Manhattan Associates has a market cap of $2.3 billion and is part of the technology sector. Shares are up 2.0% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts who rate Manhattan Associates a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Manhattan Associates as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on MANH go as follows:

  • MANH's revenue growth has slightly outpaced the industry average of 11.6%. Since the same quarter one year prior, revenues rose by 19.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • MANH has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, MANH has a quick ratio of 1.90, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Software industry and the overall market, MANHATTAN ASSOCIATES INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 36.68% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MANH should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • MANHATTAN ASSOCIATES INC has improved earnings per share by 21.3% 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 two years. We feel that this trend should continue. During the past fiscal year, MANHATTAN ASSOCIATES INC increased its bottom line by earning $0.87 versus $0.64 in the prior year. This year, the market expects an improvement in earnings ($1.12 versus $0.87).

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

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At the close, GSE Systems ( GVP) was down $0.09 (5.4%) to $1.59 on average volume. Throughout the day, 19,093 shares of GSE Systems exchanged hands as compared to its average daily volume of 21,700 shares. The stock ranged in price between $1.56-$1.68 after having opened the day at $1.64 as compared to the previous trading day's close of $1.68.

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 $28.3 million and is part of the technology sector. Shares are down 1.2% year-to-date as of the close of trading on Wednesday.

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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 and poor profit margins.

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. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.

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

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Cover-All Technologies ( COVR) was another company that pushed the Computer Software & Services industry lower today. Cover-All Technologies was down $0.04 (3.2%) to $1.20 on average volume. Throughout the day, 29,625 shares of Cover-All Technologies exchanged hands as compared to its average daily volume of 20,300 shares. The stock ranged in price between $1.16-$1.34 after having opened the day at $1.31 as compared to the previous trading day's close of $1.24.

Cover-All Technologies Inc., through its subsidiary, Cover-All Systems, Inc., licenses and maintains software products for the property/casualty insurance industry in the United States and Puerto Rico. Cover-All Technologies has a market cap of $33.3 million and is part of the technology sector. Shares are down 10.7% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates Cover-All Technologies 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.

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Highlights from TheStreet Ratings analysis on COVR go as follows:

  • In its most recent trading session, COVR 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, COVER-ALL TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 47.81% is the gross profit margin for COVER-ALL TECHNOLOGIES INC which we consider to be strong. Regardless of COVR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, COVR's net profit margin of 6.55% is significantly lower than the industry average.
  • COVER-ALL TECHNOLOGIES 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. During the past fiscal year, COVER-ALL TECHNOLOGIES INC continued to lose money by earning -$0.10 versus -$0.20 in the prior 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 128.5% when compared to the same quarter one year prior, rising from -$1.15 million to $0.33 million.

You can view the full analysis from the report here: Cover-All Technologies 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.