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 1.0% versus the S&P 500, which was down 0.3%. Laggards within the Technology sector included BluePhoenix Solutions ( BPHX), down 2.6%, Kingtone Wirelessinfo Solution ( KONE), down 1.7%, Tel Instrument Electronics ( TIK), down 3.2%, CollabRx ( CLRX), down 17.1% and Aetrium ( ATRM), down 4.3%.

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

Aetrium ( ATRM) is one of the companies that pushed the Technology sector lower today. Aetrium was down $0.15 (4.3%) to $3.37 on light volume. Throughout the day, 100 shares of Aetrium exchanged hands as compared to its average daily volume of 4,100 shares. The stock ranged in price between $3.37-$3.37 after having opened the day at $3.37 as compared to the previous trading day's close of $3.52.

Aetrium has a market cap of $4.7 million and is part of the telecommunications industry. Shares are down 47.3% year-to-date as of the close of trading on Tuesday.

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At the close, CollabRx ( CLRX) was down $0.13 (17.1%) to $0.63 on heavy volume. Throughout the day, 60,722 shares of CollabRx exchanged hands as compared to its average daily volume of 15,100 shares. The stock ranged in price between $0.60-$0.72 after having opened the day at $0.72 as compared to the previous trading day's close of $0.76.

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 $2.3 million and is part of the telecommunications industry. Shares are down 79.0% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates CollabRx a buy, no analysts rate it a sell, and none rate it a hold.

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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.

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 81.25%, 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.

BluePhoenix Solutions ( BPHX) was another company that pushed the Technology sector lower today. BluePhoenix Solutions was down $0.09 (2.6%) to $3.38 on heavy volume. Throughout the day, 3,290 shares of BluePhoenix Solutions exchanged hands as compared to its average daily volume of 1,800 shares. The stock ranged in price between $3.38-$3.51 after having opened the day at $3.51 as compared to the previous trading day's close of $3.47.

BluePhoenix Solutions Ltd. develops and markets enterprise legacy lifecycle information technology (IT) modernization solutions worldwide. BluePhoenix Solutions has a market cap of $41.0 million and is part of the telecommunications industry. Shares are down 24.6% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates BluePhoenix Solutions as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical 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 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.
  • 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.
  • BPHX has underperformed the S&P 500 Index, declining 16.91% 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 revenue fell significantly faster than the industry average of 28.1%. Since the same quarter one year prior, revenues fell by 20.4%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • 46.15% is the gross profit margin for BLUEPHOENIX SOLUTIONS LTD which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, BPHX's net profit margin of -39.97% significantly underperformed when compared to the industry average.

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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