3 Stocks Pushing The Computer Software & Services Industry Lower

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The Computer Software & Services industry as a whole closed the day up 0.4% versus the S&P 500, which was down 0.1%. Laggards within the Computer Software & Services industry included GRAVITY ( GRVY), down 4.4%, One Horizon Group ( OHGI), down 1.6%, Sajan ( SAJA), down 5.6%, Bridgeline Digital ( BLIN), down 6.0% and Asure Software ( ASUR), down 3.0%.

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

Asure Software ( ASUR) is one of the companies that pushed the Computer Software & Services industry lower today. Asure Software was down $0.15 (3.0%) to $4.90 on heavy volume. Throughout the day, 16,004 shares of Asure Software exchanged hands as compared to its average daily volume of 6,900 shares. The stock ranged in price between $4.75-$4.91 after having opened the day at $4.79 as compared to the previous trading day's close of $5.05.

Asure Software, Inc. provides cloud-based software-as-a-service (SaaS) time and labor management, and workspace management solutions worldwide. Asure Software has a market cap of $30.3 million and is part of the technology sector. Shares are down 9.8% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Asure Software a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Asure Software as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow.

Highlights from TheStreet Ratings analysis on ASUR go as follows:

  • ASURE SOFTWARE 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ASURE SOFTWARE INC continued to lose money by earning -$0.31 versus -$0.59 in the prior year. This year, the market expects an improvement in earnings ($0.14 versus -$0.31).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 102.6% when compared to the same quarter one year prior, rising from -$0.57 million to $0.02 million.
  • The gross profit margin for ASURE SOFTWARE INC is currently very high, coming in at 81.84%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, ASUR's net profit margin of 0.22% significantly trails the industry average.
  • Net operating cash flow has declined marginally to $0.68 million or 6.11% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The debt-to-equity ratio is very high at 3.98 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.43, which clearly demonstrates the inability to cover short-term cash needs.

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

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At the close, Bridgeline Digital ( BLIN) was down $0.04 (6.0%) to $0.63 on average volume. Throughout the day, 52,339 shares of Bridgeline Digital exchanged hands as compared to its average daily volume of 35,600 shares. The stock ranged in price between $0.63-$0.68 after having opened the day at $0.65 as compared to the previous trading day's close of $0.67.

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 $14.2 million and is part of the technology sector. Shares are down 38.7% 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.

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

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.

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 28.09%, 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 25.25%.

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.

Sajan ( SAJA) was another company that pushed the Computer Software & Services industry lower today. Sajan was down $0.35 (5.6%) to $5.90 on light volume. Throughout the day, 600 shares of Sajan exchanged hands as compared to its average daily volume of 3,600 shares. The stock ranged in price between $5.90-$6.01 after having opened the day at $6.01 as compared to the previous trading day's close of $6.25.

Sajan has a market cap of $22.8 million and is part of the technology sector. Shares are down 3.5% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Sajan a buy, no analysts rate it a sell, and none rate 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.

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