3 Stocks Boosting The Technology Sector Higher

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 are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 38.27 points (-0.2%) at 17,001 as of Friday, Aug. 22, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,124 issues advancing vs. 1,881 declining with 171 unchanged.

The Technology sector as a whole closed the day up 0.3% versus the S&P 500, which was down 0.2%. Top gainers within the Technology sector included Trio-Tech International ( TRT), up 11.8%, Nortech Systems ( NSYS), up 2.6%, RIT Technologies ( RITT), up 3.4%, LightPath Technologies ( LPTH), up 3.2% and GSE Systems ( GVP), up 2.5%.

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

GSE Systems ( GVP) is one of the companies that pushed the Technology sector higher today. GSE Systems was up $0.04 (2.5%) to $1.63 on light volume. Throughout the day, 3,907 shares of GSE Systems exchanged hands as compared to its average daily volume of 21,400 shares. The stock ranged in a price between $1.54-$1.64 after having opened the day at $1.55 as compared to the previous trading day's close of $1.59.

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 $30.1 million and is part of the computer software & services industry. Shares are up 5.0% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate GSE Systems a buy, no analysts rate it a sell, and none rate it a hold.

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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

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, LightPath Technologies ( LPTH) was up $0.04 (3.2%) to $1.27 on light volume. Throughout the day, 14,850 shares of LightPath Technologies exchanged hands as compared to its average daily volume of 26,400 shares. The stock ranged in a price between $1.20-$1.28 after having opened the day at $1.20 as compared to the previous trading day's close of $1.23.

LightPath Technologies, Inc. designs, develops, manufactures, and distributes optical components and assemblies. LightPath Technologies has a market cap of $17.4 million and is part of the computer software & services industry. Shares are down 9.6% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates LightPath Technologies 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 LightPath Technologies as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on LPTH 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 161.8% when compared to the same quarter one year ago, falling from $0.22 million to -$0.13 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 Electronic Equipment, Instruments & Components industry and the overall market, LIGHTPATH TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 28.48%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 150.00% 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.
  • LIGHTPATH TECHNOLOGIES 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, LIGHTPATH TECHNOLOGIES INC turned its bottom line around by earning $0.02 versus -$0.09 in the prior year. For the next year, the market is expecting a contraction of 250.0% in earnings (-$0.03 versus $0.02).
  • The gross profit margin for LIGHTPATH TECHNOLOGIES INC is rather high; currently it is at 52.55%. Regardless of LPTH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LPTH's net profit margin of -4.45% significantly underperformed when compared to the industry average.

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

RIT Technologies ( RITT) was another company that pushed the Technology sector higher today. RIT Technologies was up $0.04 (3.4%) to $1.23 on heavy volume. Throughout the day, 88,297 shares of RIT Technologies exchanged hands as compared to its average daily volume of 25,800 shares. The stock ranged in a price between $1.10-$1.46 after having opened the day at $1.20 as compared to the previous trading day's close of $1.19.

RiT Technologies Ltd. provides intelligent infrastructure management (IIM) and indoor optical wireless technology solutions. Its IIM products enhance security and network utilization for data centers, communication rooms, and work space environments. RIT Technologies has a market cap of $11.7 million and is part of the computer software & services industry. Shares are down 32.4% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate RIT Technologies a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates RIT Technologies as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on RITT 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 Communications Equipment industry. The net income has significantly decreased by 62.4% when compared to the same quarter one year ago, falling from -$1.60 million to -$2.59 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 Communications Equipment industry and the overall market, RIT TECHNOLOGIES LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for RIT TECHNOLOGIES LTD is currently lower than what is desirable, coming in at 31.24%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -154.77% is significantly below that of the industry average.
  • Looking at the price performance of RITT's shares over the past 12 months, there is not much good news to report: the stock is down 65.34%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than 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.
  • RIT TECHNOLOGIES LTD's earnings per share declined by 11.1% 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, RIT TECHNOLOGIES LTD continued to lose money by earning -$1.05 versus -$1.92 in the prior year.

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

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.

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