3 Stocks Pushing The Technology Sector Lower

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The Technology sector as a whole closed the day down 1.1% versus the S&P 500, which was down 0.7%. Laggards within the Technology sector included Sajan ( SAJA), down 8.3%, Maxcom Telecomunicaciones SAB de CV ( MXT), down 6.5%, Electro-Sensors ( ELSE), down 2.5%, Professional Diversity Network ( IPDN), down 2.2% and Konami ( KNM), down 2.6%.

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

Professional Diversity Network ( IPDN) is one of the companies that pushed the Technology sector lower today. Professional Diversity Network was down $0.10 (2.2%) to $4.49 on heavy volume. Throughout the day, 10,011 shares of Professional Diversity Network exchanged hands as compared to its average daily volume of 5,600 shares. The stock ranged in price between $4.23-$4.74 after having opened the day at $4.50 as compared to the previous trading day's close of $4.59.

Professional Diversity Network, Inc. operates online professional networking communities with career resources in the United States. Professional Diversity Network has a market cap of $29.0 million and is part of the telecommunications industry. Shares are down 0.4% year-to-date as of the close of trading on Monday. 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 deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on IPDN 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 266.9% when compared to the same quarter one year ago, falling from -$0.13 million to -$0.49 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. 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 -$0.77 million or 2161.76% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • PROFESSIONAL DIVERSITY NETWK 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 year. However, the consensus estimate suggests that this trend should reverse 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).
  • The gross profit margin for PROFESSIONAL DIVERSITY NETWK is rather high; currently it is at 61.59%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, IPDN's net profit margin of -47.33% significantly underperformed when compared to the industry average.

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

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At the close, Maxcom Telecomunicaciones SAB de CV ( MXT) was down $0.10 (6.5%) to $1.43 on light volume. Throughout the day, 900 shares of Maxcom Telecomunicaciones SAB de CV exchanged hands as compared to its average daily volume of 6,800 shares. The stock ranged in price between $1.43-$1.47 after having opened the day at $1.47 as compared to the previous trading day's close of $1.53.

Maxcom Telecomunicaciones, S.A.B. de C.V., an integrated telecommunication services operator, provides voice and data services to residential and small and medium-sized business customers in Mexico. Maxcom Telecomunicaciones SAB de CV has a market cap of $225.5 million and is part of the telecommunications industry. Shares are down 6.1% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Maxcom Telecomunicaciones SAB de CV a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Maxcom Telecomunicaciones SAB de CV 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 generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on MXT go as follows:

  • MAXCOM TELECOMUNICACIONES SA 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, MAXCOM TELECOMUNICACIONES SA reported poor results of -$0.57 versus -$0.11 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 Diversified Telecommunication Services industry. The net income has significantly decreased by 134.3% when compared to the same quarter one year ago, falling from $4.19 million to -$1.44 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 Diversified Telecommunication Services industry and the overall market, MAXCOM TELECOMUNICACIONES SA'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 43.55%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 133.33% 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.
  • 49.71% is the gross profit margin for MAXCOM TELECOMUNICACIONES SA which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, MXT's net profit margin of -2.88% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Maxcom Telecomunicaciones SAB de CV 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.

Sajan ( SAJA) was another company that pushed the Technology sector lower today. Sajan was down $0.45 (8.3%) to $5.00 on heavy volume. Throughout the day, 19,754 shares of Sajan exchanged hands as compared to its average daily volume of 1,200 shares. The stock ranged in price between $5.00-$5.40 after having opened the day at $5.26 as compared to the previous trading day's close of $5.45.

Sajan has a market cap of $22.4 million and is part of the telecommunications industry. Shares are down 5.2% year-to-date as of the close of trading on Monday.

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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