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 Internet industry as a whole closed the day up 0.6% versus the S&P 500, which was up 0.1%. Laggards within the Internet industry included Professional Diversity Network ( IPDN), down 2.8%, Selectica ( SLTC), down 1.9%, TheStreet ( TST), down 2.0%, Jiayuan.com International ( DATE), down 5.1% and Points International ( PCOM), down 3.3%.

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

TheStreet ( TST) is one of the companies that pushed the Internet industry lower today. TheStreet was down $0.04 (2.0%) to $2.16 on light volume. Throughout the day, 18,844 shares of TheStreet exchanged hands as compared to its average daily volume of 48,600 shares. The stock ranged in price between $2.16-$2.20 after having opened the day at $2.17 as compared to the previous trading day's close of $2.21.

TheStreet has a market cap of $75.8 million and is part of the technology sector. Shares are down 2.2% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates TheStreet a buy, no analysts rate it a sell, and none rate it a hold.

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At the close, Selectica ( SLTC) was down $0.10 (1.9%) to $5.28 on light volume. Throughout the day, 2,636 shares of Selectica exchanged hands as compared to its average daily volume of 7,400 shares. The stock ranged in price between $5.20-$5.29 after having opened the day at $5.29 as compared to the previous trading day's close of $5.38.

Selectica, Inc. provides cloud-based software solutions for companies in the United States, Canada, India, New Zealand, Switzerland, and the United Kingdom. Selectica has a market cap of $41.2 million and is part of the technology sector. Shares are down 16.1% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Selectica a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Selectica as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, 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 SLTC 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 Internet Software & Services industry. The net income has significantly decreased by 479.8% when compared to the same quarter one year ago, falling from -$0.47 million to -$2.70 million.
  • Net operating cash flow has significantly decreased to -$4.40 million or 58.19% 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 share price of SELECTICA INC has not done very well: it is down 11.87% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.
  • SELECTICA 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, SELECTICA INC reported poor results of -$3.10 versus -$1.67 in the prior year. This year, the market expects an improvement in earnings (-$1.24 versus -$3.10).
  • 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 Internet Software & Services industry and the overall market, SELECTICA INC'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: Selectica 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.

Professional Diversity Network ( IPDN) was another company that pushed the Internet industry lower today. Professional Diversity Network was down $0.14 (2.8%) to $4.84 on light volume. Throughout the day, 3,000 shares of Professional Diversity Network exchanged hands as compared to its average daily volume of 5,800 shares. The stock ranged in price between $4.58-$4.98 after having opened the day at $4.98 as compared to the previous trading day's close of $4.98.

Professional Diversity Network, Inc. operates online professional networking communities with career resources in the United States. Professional Diversity Network has a market cap of $63.7 million and is part of the technology sector. Shares are up 8.0% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Professional Diversity Network a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Professional Diversity Network as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, 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 feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

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 IPDN go as follows:

  • IPDN's revenue growth trails the industry average of 28.1%. Since the same quarter one year prior, revenues slightly increased by 5.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • IPDN 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 7.72, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for PROFESSIONAL DIVERSITY NETWK is rather high; currently it is at 61.59%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, IPDN's net profit margin of -47.33% significantly underperformed when compared to the industry average.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Internet Software & Services industry and the overall market, PROFESSIONAL DIVERSITY NETWK'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 -$0.77 million or 2161.76% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: Professional Diversity Network 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.