3 Stocks Pushing The Computer Hardware 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 traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 6 points (0.0%) at 17,679 as of Monday, Jan. 26, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,130 issues advancing vs. 953 declining with 135 unchanged.

The Computer Hardware industry as a whole closed the day up 1.0% versus the S&P 500, which was up 0.3%. Top gainers within the Computer Hardware industry included Video Display ( VIDE), up 5.2%, Dataram ( DRAM), up 6.3%, Echelon ( ELON), up 12.9%, Qumu ( QUMU), up 1.8% and SMART Technologies ( SMT), up 5.9%.

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

SMART Technologies ( SMT) is one of the companies that pushed the Computer Hardware industry higher today. SMART Technologies was up $0.09 (5.9%) to $1.62 on heavy volume. Throughout the day, 449,465 shares of SMART Technologies exchanged hands as compared to its average daily volume of 104,300 shares. The stock ranged in a price between $1.50-$1.65 after having opened the day at $1.58 as compared to the previous trading day's close of $1.53.

SMART Technologies has a market cap of $169.0 million and is part of the technology sector. Shares are up 29.7% year-to-date as of the close of trading on Friday.

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At the close, Qumu ( QUMU) was up $0.25 (1.8%) to $14.05 on light volume. Throughout the day, 4,129 shares of Qumu exchanged hands as compared to its average daily volume of 11,000 shares. The stock ranged in a price between $13.76-$14.29 after having opened the day at $13.83 as compared to the previous trading day's close of $13.80.

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 $127.5 million and is part of the technology sector. Shares are up 0.9% year-to-date as of the close of trading on Friday. 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 and weak operating cash flow.

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.
  • 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.
  • The stock has risen over the past year and, it has performed in line with the S&P 500 thus far. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.

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

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Echelon ( ELON) was another company that pushed the Computer Hardware industry higher today. Echelon was up $0.18 (12.9%) to $1.58 on average volume. Throughout the day, 96,096 shares of Echelon exchanged hands as compared to its average daily volume of 93,200 shares. The stock ranged in a price between $1.40-$1.58 after having opened the day at $1.40 as compared to the previous trading day's close of $1.40.

Echelon has a market cap of $59.8 million and is part of the technology sector. Shares are down 20.0% year-to-date as of the close of trading on Friday.

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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