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 down 0.2% versus the S&P 500, which was down 0.6%. Laggards within the Technology sector included BluePhoenix Solutions ( BPHX), down 1.6%, Intelligent Systems ( INS), down 4.2%, Cover-All Technologies ( COVR), down 5.0%, Forward Industries ( FORD), down 3.0% and Video Display ( VIDE), down 4.0%.

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

Turkcell Iletisim Hizmetleri AS ( TKC) is one of the companies that pushed the Technology sector lower today. Turkcell Iletisim Hizmetleri AS was down $0.49 (3.4%) to $13.90 on average volume. Throughout the day, 291,954 shares of Turkcell Iletisim Hizmetleri AS exchanged hands as compared to its average daily volume of 306,800 shares. The stock ranged in price between $13.89-$14.23 after having opened the day at $14.21 as compared to the previous trading day's close of $14.39.

Turkcell Iletisim Hizmetleri AS establishes and operates a Global System for Mobile Communications (GSM) network in Turkey and regional states. It operates through three segments: Turkcell, Euroasia, and Belarusian Telecom. Turkcell Iletisim Hizmetleri AS has a market cap of $12.8 billion and is part of the telecommunications industry. Shares are up 7.8% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate Turkcell Iletisim Hizmetleri AS a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Turkcell Iletisim Hizmetleri AS as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on TKC go as follows:

  • TKC's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.56, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for TURKCELL ILETISIM HIZMET is rather high; currently it is at 52.39%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, TKC's net profit margin of 16.67% significantly trails 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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The revenue fell significantly faster than the industry average of 55.6%. Since the same quarter one year prior, revenues fell by 10.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • TURKCELL ILETISIM HIZMET's earnings per share declined by 22.9% in the most recent quarter compared to 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, TURKCELL ILETISIM HIZMET increased its bottom line by earning $1.40 versus $1.32 in the prior year. For the next year, the market is expecting a contraction of 15.0% in earnings ($1.19 versus $1.40).

You can view the full analysis from the report here: Turkcell Iletisim Hizmetleri AS 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, Cover-All Technologies ( COVR) was down $0.06 (5.0%) to $1.13 on heavy volume. Throughout the day, 64,455 shares of Cover-All Technologies exchanged hands as compared to its average daily volume of 25,000 shares. The stock ranged in price between $1.12-$1.29 after having opened the day at $1.19 as compared to the previous trading day's close of $1.19.

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 $30.1 million and is part of the telecommunications industry. Shares are down 15.0% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates Cover-All Technologies as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on COVR go as follows:

  • Net operating cash flow has decreased to $1.35 million or 49.22% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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.

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.

BluePhoenix Solutions ( BPHX) was another company that pushed the Technology sector lower today. BluePhoenix Solutions was down $0.06 (1.6%) to $3.59 on light volume. Throughout the day, 3,028 shares of BluePhoenix Solutions exchanged hands as compared to its average daily volume of 6,200 shares. The stock ranged in price between $3.55-$3.68 after having opened the day at $3.56 as compared to the previous trading day's close of $3.65.

BluePhoenix Solutions Ltd. develops and markets enterprise legacy lifecycle information technology (IT) modernization solutions worldwide. BluePhoenix Solutions has a market cap of $42.1 million and is part of the telecommunications industry. Shares are down 20.6% year-to-date as of the close of trading on Thursday.

TheStreet Ratings rates BluePhoenix Solutions as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on BPHX go as follows:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Software industry average. The net income increased by 0.4% when compared to the same quarter one year prior, going from -$0.76 million to -$0.75 million.
  • BPHX's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.31, which illustrates the ability to avoid short-term cash problems.
  • BLUEPHOENIX SOLUTIONS LTD reported flat earnings per share in the most recent quarter. 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, BLUEPHOENIX SOLUTIONS LTD continued to lose money by earning -$0.34 versus -$1.42 in the prior year.
  • Net operating cash flow has significantly decreased to -$0.48 million or 127.35% 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 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 Software industry and the overall market, BLUEPHOENIX SOLUTIONS LTD'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: BluePhoenix Solutions 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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