3 Computer Software & Services Stocks Pushing The Industry Higher

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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 106.38 points (-0.6%) at 17,321 as of Thursday, Jan. 15, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,098 issues advancing vs. 2,009 declining with 122 unchanged.

The Computer Software & Services industry as a whole closed the day down 2.0% versus the S&P 500, which was down 0.9%. Top gainers within the Computer Software & Services industry included Kingtone Wirelessinfo Solution ( KONE), up 27.9%, Intelligent Systems ( INS), up 3.1%, CounterPath ( CPAH), up 2.6%, Sajan ( SAJA), up 4.6% and Bridgeline Digital ( BLIN), up 1.5%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Bridgeline Digital ( BLIN) is one of the companies that pushed the Computer Software & Services industry higher today. Bridgeline Digital was up $0.01 (1.5%) to $0.46 on light volume. Throughout the day, 7,600 shares of Bridgeline Digital exchanged hands as compared to its average daily volume of 68,900 shares. The stock ranged in a price between $0.45-$0.46 after having opened the day at $0.45 as compared to the previous trading day's close of $0.45.

Bridgeline Digital, Inc. develops iAPPS Web engagement management product platform 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 $10.5 million and is part of the technology sector. Shares are up 4.8% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Bridgeline Digital a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Bridgeline Digital as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating 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 BLIN 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 157.9% when compared to the same quarter one year ago, falling from -$0.71 million to -$1.82 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 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.
  • Net operating cash flow has significantly decreased to -$0.97 million or 358.66% 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 61.35%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 100.00% 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.
  • BRIDGELINE DIGITAL 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, BRIDGELINE DIGITAL INC reported poor results of -$0.31 versus -$0.23 in the prior year. This year, the market expects an improvement in earnings (-$0.16 versus -$0.31).

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

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At the close, Sajan ( SAJA) was up $0.27 (4.6%) to $6.12 on light volume. Throughout the day, 946 shares of Sajan exchanged hands as compared to its average daily volume of 4,300 shares. The stock ranged in a price between $5.78-$6.12 after having opened the day at $5.78 as compared to the previous trading day's close of $5.85.

Sajan has a market cap of $28.4 million and is part of the technology sector. Shares are up 3.5% year-to-date as of the close of trading on Wednesday.

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

CounterPath ( CPAH) was another company that pushed the Computer Software & Services industry higher today. CounterPath was up $0.02 (2.6%) to $0.78 on light volume. Throughout the day, 14,200 shares of CounterPath exchanged hands as compared to its average daily volume of 27,000 shares. The stock ranged in a price between $0.70-$0.80 after having opened the day at $0.80 as compared to the previous trading day's close of $0.76.

CounterPath has a market cap of $32.3 million and is part of the technology sector. Shares are up 49.0% year-to-date as of the close of trading on Wednesday.

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.

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