3 Stocks Pushing The Computer Software & Services Industry Lower

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The Computer Software & Services industry as a whole closed the day down 0.8% versus the S&P 500, which was down 0.6%. Laggards within the Computer Software & Services industry included BluePhoenix Solutions ( BPHX), down 4.0%, Astea International ( ATEA), down 2.9%, Intelligent Systems ( INS), down 8.3%, Cover-All Technologies ( COVR), down 2.6% and Kingtone Wirelessinfo Solution ( KONE), down 5.4%.

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

Insight ( NSIT) is one of the companies that pushed the Computer Software & Services industry lower today. Insight was down $0.60 (2.5%) to $23.18 on average volume. Throughout the day, 140,373 shares of Insight exchanged hands as compared to its average daily volume of 175,000 shares. The stock ranged in price between $23.18-$23.81 after having opened the day at $23.71 as compared to the previous trading day's close of $23.78.

Insight Enterprises, Inc. provides information technology (IT) hardware, software, and services solutions to businesses and public sector clients in North America, Europe, the Middle East, Africa, and the Asia-Pacific. Insight has a market cap of $1.0 billion and is part of the technology sector. Shares are up 4.7% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Insight a buy, 1 analyst rates it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Insight as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on NSIT go as follows:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry average. The net income increased by 2.8% when compared to the same quarter one year prior, going from $26.51 million to $27.25 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 0.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • NSIT's debt-to-equity ratio is very low at 0.19 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 1.24, which illustrates the ability to avoid short-term cash problems.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 31.71% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, NSIT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.

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

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At the close, Cover-All Technologies ( COVR) was down $0.03 (2.6%) to $1.11 on light volume. Throughout the day, 17,195 shares of Cover-All Technologies exchanged hands as compared to its average daily volume of 28,300 shares. The stock ranged in price between $1.10-$1.18 after having opened the day at $1.18 as compared to the previous trading day's close of $1.14.

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 $31.4 million and is part of the technology sector. Shares are down 18.6% year-to-date as of the close of trading on Monday.

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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.
  • COVR has underperformed the S&P 500 Index, declining 8.67% from its price level of one year ago. 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

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BluePhoenix Solutions ( BPHX) was another company that pushed the Computer Software & Services industry lower today. BluePhoenix Solutions was down $0.15 (4.0%) to $3.55 on light volume. Throughout the day, 3,400 shares of BluePhoenix Solutions exchanged hands as compared to its average daily volume of 5,400 shares. The stock ranged in price between $3.55-$3.70 after having opened the day at $3.63 as compared to the previous trading day's close of $3.70.

BluePhoenix Solutions Ltd. develops and markets enterprise legacy lifecycle information technology (IT) modernization solutions worldwide. BluePhoenix Solutions has a market cap of $42.6 million and is part of the technology sector. Shares are down 19.6% year-to-date as of the close of trading on Monday.

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.

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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

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