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 0.1% versus the S&P 500, which was unchanged. Laggards within the Computer Software & Services industry included CollabRx ( CLRX), down 3.7%, TigerLogic ( TIGR), down 27.4%, One Horizon Group ( OHGI), down 1.7%, Astea International ( ATEA), down 3.1% and CounterPath ( CPAH), down 4.2%.

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

Monotype Imaging Holdings ( TYPE) is one of the companies that pushed the Computer Software & Services industry lower today. Monotype Imaging Holdings was down $0.74 (2.6%) to $27.87 on average volume. Throughout the day, 211,862 shares of Monotype Imaging Holdings exchanged hands as compared to its average daily volume of 154,100 shares. The stock ranged in price between $27.71-$28.60 after having opened the day at $28.52 as compared to the previous trading day's close of $28.61.

Monotype Imaging Holdings Inc. develops, markets, and licenses technologies and fonts in the United States, the United Kingdom, Germany, Japan, and rest of Asia. Monotype Imaging Holdings has a market cap of $1.1 billion and is part of the technology sector. Shares are down 10.2% year-to-date as of the close of trading on Friday. Currently there are 2 analysts who rate Monotype Imaging Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Monotype Imaging Holdings as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from TheStreet Ratings analysis on TYPE go as follows:

  • MONOTYPE IMAGING HOLDINGS has improved earnings per share by 5.5% 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. During the past fiscal year, MONOTYPE IMAGING HOLDINGS increased its bottom line by earning $0.78 versus $0.75 in the prior year. This year, the market expects an improvement in earnings ($1.13 versus $0.78).
  • 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 5.2% when compared to the same quarter one year prior, going from $7.31 million to $7.69 million.
  • TYPE's revenue growth trails the industry average of 26.6%. Since the same quarter one year prior, revenues slightly increased by 9.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TYPE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.15, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for MONOTYPE IMAGING HOLDINGS is currently very high, coming in at 84.63%. Regardless of TYPE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 17.10% trails the industry average.

You can view the full analysis from the report here: Monotype Imaging Holdings Ratings Report

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At the close, CounterPath ( CPAH) was down $0.04 (4.2%) to $0.90 on light volume. Throughout the day, 9,870 shares of CounterPath exchanged hands as compared to its average daily volume of 49,300 shares. The stock ranged in price between $0.89-$0.95 after having opened the day at $0.90 as compared to the previous trading day's close of $0.94.

CounterPath has a market cap of $39.1 million and is part of the technology sector. Shares are down 12.2% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate CounterPath a buy, 1 analyst rates it a sell, and 1 rates it a hold.

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

CollabRx ( CLRX) was another company that pushed the Computer Software & Services industry lower today. CollabRx was down $0.03 (3.7%) to $0.70 on light volume. Throughout the day, 1,100 shares of CollabRx exchanged hands as compared to its average daily volume of 15,000 shares. The stock ranged in price between $0.69-$0.71 after having opened the day at $0.69 as compared to the previous trading day's close of $0.73.

CollabRx, Inc. provides cloud-based expert systems to inform healthcare decision-making. The company's cloud-based expert systems provide clinical knowledge to institutions, physicians, researchers, and patients for genomics-based medicine in cancer. CollabRx has a market cap of $2.2 million and is part of the technology sector. Shares are down 80.8% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates CollabRx a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates CollabRx as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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 CLRX 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 Health Care Technology industry. The net income has significantly decreased by 56.6% when compared to the same quarter one year ago, falling from -$0.80 million to -$1.25 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 Health Care Technology industry and the overall market, COLLABRX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$0.73 million or 19.96% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 82.92%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 74.28% 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.
  • COLLABRX INC 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. 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, COLLABRX INC continued to lose money by earning -$1.78 versus -$2.15 in the prior year. For the next year, the market is expecting a contraction of 3.9% in earnings (-$1.85 versus -$1.78).

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