3 Stocks Pushing The Technology Sector 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 Technology sector as a whole closed the day up 0.4% versus the S&P 500, which was up 0.5%. Laggards within the Technology sector included Bio-Rad Laboratories ( BIO.B), down 2.3%, Tel Instrument Electronics ( TIK), down 3.1%, LookSmart ( LOOK), down 2.0%, Professional Diversity Network ( IPDN), down 7.8% and Internet Gold Golden Lines ( IGLD), down 2.1%.

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

Internet Gold Golden Lines ( IGLD) is one of the companies that pushed the Technology sector lower today. Internet Gold Golden Lines was down $0.20 (2.1%) to $9.41 on light volume. Throughout the day, 2,605 shares of Internet Gold Golden Lines exchanged hands as compared to its average daily volume of 3,800 shares. The stock ranged in price between $9.41-$9.76 after having opened the day at $9.76 as compared to the previous trading day's close of $9.61.

Internet Gold Golden Lines has a market cap of $191.5 million and is part of the electronics industry. Shares are up 12.3% year-to-date as of the close of trading on Thursday.

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At the close, Professional Diversity Network ( IPDN) was down $0.39 (7.8%) to $4.59 on average volume. Throughout the day, 4,575 shares of Professional Diversity Network exchanged hands as compared to its average daily volume of 5,700 shares. The stock ranged in price between $4.59-$4.92 after having opened the day at $4.89 as compared to the previous trading day's close of $4.98.

Professional Diversity Network, Inc. operates online professional networking communities with career resources in the United States. Professional Diversity Network has a market cap of $31.4 million and is part of the electronics industry. Shares are up 8.0% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Professional Diversity Network a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Professional Diversity Network as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on IPDN go as follows:

  • 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, PROFESSIONAL DIVERSITY NETWK'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 -$0.35 million or 138.51% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for PROFESSIONAL DIVERSITY NETWK is currently very high, coming in at 70.44%. Regardless of IPDN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, IPDN's net profit margin of -21.24% significantly underperformed when compared to the industry average.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Regardless of the rise in share value over the previous year, we feel that the risks involved in investing in this stock do not compensate for any future upside potential.
  • PROFESSIONAL DIVERSITY NETWK reported significant earnings per share improvement 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, PROFESSIONAL DIVERSITY NETWK swung to a loss, reporting -$0.23 versus $0.27 in the prior year. This year, the market expects an improvement in earnings (-$0.19 versus -$0.23).

You can view the full analysis from the report here: Professional Diversity Network Ratings Report

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LookSmart ( LOOK) was another company that pushed the Technology sector lower today. LookSmart was down $0.03 (2.0%) to $1.57 on light volume. Throughout the day, 5,360 shares of LookSmart exchanged hands as compared to its average daily volume of 16,000 shares. The stock ranged in price between $1.54-$1.60 after having opened the day at $1.55 as compared to the previous trading day's close of $1.60.

LookSmart, Ltd. provides search and display advertising network solutions in the United States, Europe, the Middle East, and Africa. LookSmart has a market cap of $8.9 million and is part of the electronics industry. Shares are down 21.9% year-to-date as of the close of trading on Thursday.

TheStreet Ratings rates LookSmart 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 and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on LOOK 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 Internet Software & Services industry. The net income has significantly decreased by 30.1% when compared to the same quarter one year ago, falling from -$1.46 million to -$1.90 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, LOOKSMART LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The share price of LOOKSMART LTD has not done very well: it is down 18.25% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.
  • LOOKSMART LTD's earnings per share declined by 37.5% 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, LOOKSMART LTD continued to lose money by earning -$0.93 versus -$1.92 in the prior year.
  • The revenue fell significantly faster than the industry average of 19.9%. Since the same quarter one year prior, revenues fell by 47.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here: LookSmart 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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