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The Computer Hardware industry as a whole closed the day down 2.3% versus the S&P 500, which was down 0.9%. Laggards within the Computer Hardware industry included Video Display ( VIDE), down 17.2%, Mad Catz Interactive ( MCZ), down 4.4%, China TechFaith Wireless Comm Tech ( CNTF), down 1.9%, SMART Technologies ( SMT), down 6.3% and Transact Technologies ( TACT), down 2.0%.

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

SMART Technologies ( SMT) is one of the companies that pushed the Computer Hardware industry lower today. SMART Technologies was down $0.09 (6.3%) to $1.33 on average volume. Throughout the day, 143,591 shares of SMART Technologies exchanged hands as compared to its average daily volume of 101,100 shares. The stock ranged in price between $1.28-$1.45 after having opened the day at $1.42 as compared to the previous trading day's close of $1.42.

SMART Technologies has a market cap of $160.5 million and is part of the technology sector. Shares are up 20.3% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate SMART Technologies a buy, no analysts rate it a sell, and 1 rates it a hold.

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At the close, China TechFaith Wireless Comm Tech ( CNTF) was down $0.02 (1.9%) to $1.04 on average volume. Throughout the day, 69,535 shares of China TechFaith Wireless Comm Tech exchanged hands as compared to its average daily volume of 89,800 shares. The stock ranged in price between $1.03-$1.06 after having opened the day at $1.03 as compared to the previous trading day's close of $1.06.

China Techfaith Wireless Communication Technology Limited is engaged in the original design, development, and sale of mobile handsets in the People's Republic of China and internationally. China TechFaith Wireless Comm Tech has a market cap of $57.2 million and is part of the technology sector. Shares are down 3.6% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates China TechFaith Wireless Comm Tech as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on CNTF 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 Computers & Peripherals industry. The net income has significantly decreased by 1878.7% when compared to the same quarter one year ago, falling from $0.26 million to -$4.59 million.
  • 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 Computers & Peripherals industry and the overall market, CHINA TECHFAITH WIRELESS-ADR's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHINA TECHFAITH WIRELESS-ADR is currently extremely low, coming in at 8.76%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -20.75% is significantly below that of the industry average.
  • This stock's share value has moved by only 39.25% over the past year. 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.
  • CHINA TECHFAITH WIRELESS-ADR's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, CHINA TECHFAITH WIRELESS-ADR continued to lose money by earning -$0.05 versus -$0.06 in the prior year.

You can view the full analysis from the report here: China TechFaith Wireless Comm Tech Ratings Report

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Mad Catz Interactive ( MCZ) was another company that pushed the Computer Hardware industry lower today. Mad Catz Interactive was down $0.02 (4.4%) to $0.43 on light volume. Throughout the day, 21,415 shares of Mad Catz Interactive exchanged hands as compared to its average daily volume of 171,000 shares. The stock ranged in price between $0.43-$0.46 after having opened the day at $0.45 as compared to the previous trading day's close of $0.45.

Mad Catz Interactive, Inc. designs, manufactures, markets, sells, and distributes various entertainment products in the United States and internationally. Mad Catz Interactive has a market cap of $29.6 million and is part of the technology sector. Shares are up 8.0% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates Mad Catz Interactive as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, generally disappointing historical performance in the stock itself, weak operating cash flow and poor profit margins.

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Highlights from TheStreet Ratings analysis on MCZ go as follows:

  • The debt-to-equity ratio of 1.29 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.45, which clearly demonstrates the inability to cover short-term cash needs.
  • Net operating cash flow has decreased to -$3.16 million or 16.77% when compared to the same quarter last year. Despite a decrease in cash flow of 16.77%, MAD CATZ INTERACTIVE INC is still significantly exceeding the industry average of -66.85%.
  • MCZ has underperformed the S&P 500 Index, declining 9.62% 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 gross profit margin for MAD CATZ INTERACTIVE INC is currently lower than what is desirable, coming in at 31.96%. Regardless of MCZ's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -4.10% trails the industry average.
  • 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 Household Durables industry and the overall market, MAD CATZ INTERACTIVE 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: Mad Catz Interactive Ratings Report

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