3 Stocks Pushing The Computer Hardware Industry Lower

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The Computer Hardware industry as a whole closed the day up 0.4% versus the S&P 500, which was down 0.5%. Laggards within the Computer Hardware industry included Video Display ( VIDE), down 6.1%, Acorn Energy ( ACFN), down 2.0%, Qumu ( QUMU), down 2.3%, Radisys ( RSYS), down 1.7% and voxeljet AG ADR ( VJET), down 1.9%.

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

Radisys ( RSYS) is one of the companies that pushed the Computer Hardware industry lower today. Radisys was down $0.04 (1.7%) to $2.32 on light volume. Throughout the day, 27,463 shares of Radisys exchanged hands as compared to its average daily volume of 85,600 shares. The stock ranged in price between $2.31-$2.35 after having opened the day at $2.31 as compared to the previous trading day's close of $2.36.

Radisys Corporation operates as a provider of wireless infrastructure solutions in the telecom, aerospace, and defense markets. Radisys has a market cap of $85.0 million and is part of the technology sector. Shares are up 0.8% year-to-date as of the close of trading on Thursday. Currently there are 3 analysts who rate Radisys a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Radisys 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.

Highlights from TheStreet Ratings analysis on RSYS 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 Electronic Equipment, Instruments & Components industry and the overall market, RADISYS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$1.65 million or 38.07% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • RSYS has underperformed the S&P 500 Index, declining 16.50% 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.
  • RSYS, with its decline in revenue, slightly underperformed the industry average of 0.9%. Since the same quarter one year prior, revenues slightly dropped by 6.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • RADISYS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, RADISYS CORP reported poor results of -$1.70 versus -$1.59 in the prior year. This year, the market expects an improvement in earnings (-$0.11 versus -$1.70).

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

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At the close, Qumu ( QUMU) was down $0.33 (2.3%) to $13.80 on average volume. Throughout the day, 11,217 shares of Qumu exchanged hands as compared to its average daily volume of 11,100 shares. The stock ranged in price between $13.52-$14.09 after having opened the day at $14.03 as compared to the previous trading day's close of $14.13.

Qumu Corporation engages in enterprise video content management software business. The company provides the tools that businesses need to create, manage, secure, distribute, and measure the success of their videos. Qumu has a market cap of $126.3 million and is part of the technology sector. Shares are up 3.4% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate Qumu a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Qumu 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.

Highlights from TheStreet Ratings analysis on QUMU go as follows:

  • 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 Computers & Peripherals industry and the overall market, QUMU CORP'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 -$8.47 million or 436.26% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • In its most recent trading session, QUMU has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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 QUMU CORP is rather high; currently it is at 50.57%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, QUMU's net profit margin of 148.30% significantly outperformed against the industry.
  • QUMU 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 4.44, which clearly demonstrates the ability to cover short-term cash needs.

You can view the full analysis from the report here: Qumu 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.

Acorn Energy ( ACFN) was another company that pushed the Computer Hardware industry lower today. Acorn Energy was down $0.01 (2.0%) to $0.49 on light volume. Throughout the day, 175,030 shares of Acorn Energy exchanged hands as compared to its average daily volume of 285,700 shares. The stock ranged in price between $0.49-$0.53 after having opened the day at $0.52 as compared to the previous trading day's close of $0.50.

Acorn Energy, Inc., through its subsidiaries, provides technology driven solutions for energy infrastructure asset management worldwide. It offers oil and gas sensor systems, a fiber optic sensing system for the energy, commercial security, and defense markets. Acorn Energy has a market cap of $13.5 million and is part of the technology sector. Shares are down 33.9% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Acorn Energy a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Acorn Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on ACFN go as follows:

  • The gross profit margin for ACORN ENERGY INC is currently lower than what is desirable, coming in at 32.75%. Regardless of ACFN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ACFN's net profit margin of -68.25% significantly underperformed when compared to the industry average.
  • ACFN'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 84.37%, 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.
  • 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 Electronic Equipment, Instruments & Components industry and the overall market, ACORN ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • ACFN's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 1.00 is somewhat weak and could be cause for future problems.
  • Net operating cash flow has slightly increased to -$5.30 million or 3.62% when compared to the same quarter last year. Despite an increase in cash flow, ACORN ENERGY INC's cash flow growth rate is still lower than the industry average growth rate of 27.53%.

You can view the full analysis from the report here: Acorn Energy 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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