3 Stocks Pushing The Computer Hardware Industry 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 Computer Hardware industry as a whole closed the day down 0.9% versus the S&P 500, which was down 0.7%. Laggards within the Computer Hardware industry included Lantronix ( LTRX), down 2.2%, Dataram ( DRAM), down 3.9%, Concurrent Computer ( CCUR), down 2.0%, SMART Technologies ( SMT), down 1.6% and Crossroads Systems ( CRDS), down 2.0%.

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

SMART Technologies ( SMT) is one of the companies that pushed the Computer Hardware industry lower today. SMART Technologies was down $0.03 (1.6%) to $1.86 on light volume. Throughout the day, 89,667 shares of SMART Technologies exchanged hands as compared to its average daily volume of 137,100 shares. The stock ranged in price between $1.84-$1.92 after having opened the day at $1.86 as compared to the previous trading day's close of $1.89.

SMART Technologies has a market cap of $233.0 million and is part of the technology sector. Shares are down 12.8% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate SMART Technologies a buy, no analysts rate it a sell, and 2 rate it a hold.

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At the close, Concurrent Computer ( CCUR) was down $0.16 (2.0%) to $7.87 on heavy volume. Throughout the day, 56,742 shares of Concurrent Computer exchanged hands as compared to its average daily volume of 31,900 shares. The stock ranged in price between $7.77-$8.07 after having opened the day at $7.92 as compared to the previous trading day's close of $8.03.

Concurrent Computer Corporation provides software, hardware, and professional services for the multi-screen video and real-time markets in North America, the Asia Pacific, Europe, and South America. It operates through two segments, Products and Services. Concurrent Computer has a market cap of $72.4 million and is part of the technology sector. Shares are down 4.3% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Concurrent Computer as a hold. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from TheStreet Ratings analysis on CCUR go as follows:

  • CONCURRENT COMPUTER CP has improved earnings per share by 9.1% 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. During the past fiscal year, CONCURRENT COMPUTER CP turned its bottom line around by earning $0.49 versus -$0.35 in the prior year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.3%. Since the same quarter one year prior, revenues slightly increased by 8.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has increased to -$1.05 million or 12.37% when compared to the same quarter last year. Despite an increase in cash flow, CONCURRENT COMPUTER CP's cash flow growth rate is still lower than the industry average growth rate of 35.74%.
  • The gross profit margin for CONCURRENT COMPUTER CP is rather high; currently it is at 58.92%. Regardless of CCUR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CCUR's net profit margin of 5.91% is significantly lower than the industry average.
  • In its most recent trading session, CCUR 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 toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

You can view the full analysis from the report here: Concurrent Computer Ratings Report

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Lantronix ( LTRX) was another company that pushed the Computer Hardware industry lower today. Lantronix was down $0.04 (2.2%) to $1.77 on heavy volume. Throughout the day, 48,277 shares of Lantronix exchanged hands as compared to its average daily volume of 23,800 shares. The stock ranged in price between $1.76-$1.89 after having opened the day at $1.81 as compared to the previous trading day's close of $1.81.

Lantronix, Inc. designs, develops, markets, and sells networking and communications products in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Lantronix has a market cap of $26.8 million and is part of the technology sector. Shares are up 15.7% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Lantronix a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Lantronix as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

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Highlights from TheStreet Ratings analysis on LTRX go as follows:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • LANTRONIX 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, LANTRONIX INC continued to lose money by earning -$0.06 versus -$0.19 in the prior year. This year, the market expects an improvement in earnings (-$0.01 versus -$0.06).
  • LTRX's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.99 is somewhat weak and could be cause for future problems.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 3.3%. Since the same quarter one year prior, revenues slightly dropped by 0.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • 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 Communications Equipment industry and the overall market, LANTRONIX INC's return on equity significantly trails that of both the industry average and the S&P 500.

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