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The Computer Software & Services industry as a whole closed the day down 1.0% versus the S&P 500, which was down 0.7%. Laggards within the Computer Software & Services industry included TigerLogic ( TIGR), down 4.0%, One Horizon Group ( OHGI), down 3.0%, Bridgeline Digital ( BLIN), down 1.6%, Cover-All Technologies ( COVR), down 1.7% and CounterPath ( CPAH), down 2.1%.

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

CounterPath ( CPAH) is one of the companies that pushed the Computer Software & Services industry lower today. CounterPath was down $0.02 (2.1%) to $0.91 on light volume. Throughout the day, 11,100 shares of CounterPath exchanged hands as compared to its average daily volume of 51,700 shares. The stock ranged in price between $0.88-$0.91 after having opened the day at $0.88 as compared to the previous trading day's close of $0.93.

CounterPath has a market cap of $37.9 million and is part of the technology sector. Shares are down 16.8% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate CounterPath a buy, 1 analyst rates it a sell, and 1 rates it a hold.

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At the close, Cover-All Technologies ( COVR) was down $0.02 (1.7%) to $1.13 on light volume. Throughout the day, 5,461 shares of Cover-All Technologies exchanged hands as compared to its average daily volume of 23,800 shares. The stock ranged in price between $1.12-$1.13 after having opened the day at $1.13 as compared to the previous trading day's close of $1.15.

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 $30.6 million and is part of the technology sector. Shares are down 17.9% year-to-date as of the close of trading on Tuesday.

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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 7.20% 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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Bridgeline Digital ( BLIN) was another company that pushed the Computer Software & Services industry lower today. Bridgeline Digital was down $0.01 (1.6%) to $0.63 on light volume. Throughout the day, 7,910 shares of Bridgeline Digital exchanged hands as compared to its average daily volume of 29,900 shares. The stock ranged in price between $0.63-$0.65 after having opened the day at $0.64 as compared to the previous trading day's close of $0.64.

Bridgeline Digital, Inc. develops iAPPS Web engagement management product platform and related digital solutions in the United States. Its iAPPS platform enables companies and developers to create Websites, Web applications, and online stores. Bridgeline Digital has a market cap of $13.6 million and is part of the technology sector. Shares are down 39.6% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Bridgeline Digital a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Bridgeline Digital as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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Highlights from TheStreet Ratings analysis on BLIN 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, BRIDGELINE DIGITAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • BLIN's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 38.00%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
  • BRIDGELINE DIGITAL INC has improved earnings per share by 40.0% 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, BRIDGELINE DIGITAL INC reported poor results of -$0.23 versus -$0.07 in the prior year. For the next year, the market is expecting a contraction of 26.1% in earnings (-$0.29 versus -$0.23).
  • Despite currently having a low debt-to-equity ratio of 0.31, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.95 is weak.
  • Net operating cash flow has increased to -$1.22 million or 14.87% when compared to the same quarter last year. Despite an increase in cash flow, BRIDGELINE DIGITAL INC's cash flow growth rate is still lower than the industry average growth rate of 25.66%.

You can view the full analysis from the report here: Bridgeline Digital 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.