3 Stocks Pushing The Technology Sector Lower

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 Technology sector as a whole closed the day up 0.8% versus the S&P 500, which was up 0.3%. Laggards within the Technology sector included TSR ( TSRI), down 3.2%, Professional Diversity Network ( IPDN), down 2.2%, CounterPath ( CPAH), down 6.8%, Qualstar ( QBAK), down 2.1% and Sajan ( SAJA), down 1.5%.

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

Qualstar ( QBAK) is one of the companies that pushed the Technology sector lower today. Qualstar was down $0.03 (2.1%) to $1.39 on light volume. Throughout the day, 6,150 shares of Qualstar exchanged hands as compared to its average daily volume of 16,300 shares. The stock ranged in price between $1.39-$1.44 after having opened the day at $1.43 as compared to the previous trading day's close of $1.42.

Qualstar Corporation designs, develops, manufactures, and sells power supplies and data storage systems worldwide. It operates through two segments, Power Supplies and Tape Libraries. Qualstar has a market cap of $17.3 million and is part of the telecommunications industry. Shares are up 7.6% year-to-date as of the close of trading on Friday.

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

TheStreet Ratings rates Qualstar as a sell. The area that we feel has been the company's primary weakness has been its disappointing return on equity.

Highlights from TheStreet Ratings analysis on QBAK go as follows:

  • 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 Computers & Peripherals industry and the overall market, QUALSTAR CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • 38.28% is the gross profit margin for QUALSTAR CORP which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -9.69% is in-line with the industry average.
  • QUALSTAR CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, QUALSTAR CORP continued to lose money by earning -$0.47 versus -$0.85 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Computers & Peripherals industry. The net income increased by 87.3% when compared to the same quarter one year prior, rising from -$2.53 million to -$0.32 million.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, and has traded in line with the S&P 500. 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: Qualstar 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.

At the close, CounterPath ( CPAH) was down $0.05 (6.8%) to $0.73 on light volume. Throughout the day, 4,375 shares of CounterPath exchanged hands as compared to its average daily volume of 26,800 shares. The stock ranged in price between $0.67-$0.75 after having opened the day at $0.75 as compared to the previous trading day's close of $0.78.

CounterPath has a market cap of $31.9 million and is part of the telecommunications industry. Shares are up 47.0% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate CounterPath a buy, 1 analyst rates it a sell, and none rate it a hold.

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 Technology sector lower today. Professional Diversity Network was down $0.10 (2.2%) to $4.12 on heavy volume. Throughout the day, 9,076 shares of Professional Diversity Network exchanged hands as compared to its average daily volume of 4,900 shares. The stock ranged in price between $4.00-$4.25 after having opened the day at $4.25 as compared to the previous trading day's close of $4.22.

Professional Diversity Network, Inc. operates online professional networking communities with career resources in the United States. Professional Diversity Network has a market cap of $53.2 million and is part of the telecommunications industry. Shares are down 13.4% year-to-date as of the close of trading on Friday. 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 sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow.

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:

  • PROFESSIONAL DIVERSITY NETWK 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, PROFESSIONAL DIVERSITY NETWK swung to a loss, reporting -$0.23 versus $0.27 in the prior year. For the next year, the market is expecting a contraction of 65.2% in earnings (-$0.38 versus -$0.23).
  • 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 247.2% when compared to the same quarter one year ago, falling from -$0.27 million to -$0.94 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 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 -$2.80 million or 679.10% 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 PROFESSIONAL DIVERSITY NETWK is currently very high, coming in at 75.37%. Regardless of IPDN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, IPDN's net profit margin of -59.74% significantly underperformed when compared to the industry average.

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.

More from Markets

Trump Slams Federal Reserve, Stocks Hardly React

Trump Slams Federal Reserve, Stocks Hardly React

Trump, the Fed, Kohl's, Nvidia and Amazon - 5 Things You Must Know

Trump, the Fed, Kohl's, Nvidia and Amazon - 5 Things You Must Know

How Alibaba Earnings and Jerome Powell's Jackson Hole Speech Could Move Markets

How Alibaba Earnings and Jerome Powell's Jackson Hole Speech Could Move Markets

How Sports Betting Will Impact TV M&A; Toys 'R' Us Lives On, Somewhere -- ICMYI

How Sports Betting Will Impact TV M&A; Toys 'R' Us Lives On, Somewhere -- ICMYI

Famed Chartist Marc Chaikin Gives Jim Cramer His Top Picks This Wednesday

Famed Chartist Marc Chaikin Gives Jim Cramer His Top Picks This Wednesday