3 Stocks Advancing The Technology Sector

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 140 points (0.8%) at 17,869 as of Tuesday, Feb. 10, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,747 issues advancing vs. 1,330 declining with 126 unchanged.

The Technology sector as a whole closed the day up 0.6% versus the S&P 500, which was up 1.1%. Top gainers within the Technology sector included LookSmart ( LOOK), up 3.1%, GRAVITY ( GRVY), up 5.7%, Cover-All Technologies ( COVR), up 3.5%, Eltek ( ELTK), up 1.7% and Glowpoint ( GLOW), up 2.0%.

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

Glowpoint ( GLOW) is one of the companies that pushed the Technology sector higher today. Glowpoint was up $0.02 (2.0%) to $1.04 on light volume. Throughout the day, 5,041 shares of Glowpoint exchanged hands as compared to its average daily volume of 17,100 shares. The stock ranged in a price between $1.04-$1.05 after having opened the day at $1.05 as compared to the previous trading day's close of $1.02.

Glowpoint, Inc. provides video collaboration services and network solutions in the United States. The company offers managed videoconferencing as a cloud-based service with videoconferences hosted in the Glowpoint Cloud and as on-premise solution. Glowpoint has a market cap of $38.7 million and is part of the telecommunications industry. Shares are down 1.8% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Glowpoint a buy, no analysts rate 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.

TheStreet Ratings rates Glowpoint as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk.

Highlights from TheStreet Ratings analysis on GLOW 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 Internet Software & Services industry and the overall market, GLOWPOINT INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $0.31 million or 31.44% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • GLOW'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 26.25%, 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 debt-to-equity ratio of 1.17 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, GLOW's quick ratio is somewhat strong at 1.21, demonstrating the ability to handle short-term liquidity needs.
  • GLOW, with its decline in revenue, underperformed when compared the industry average of 9.5%. Since the same quarter one year prior, revenues slightly dropped by 4.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

You can view the full analysis from the report here: Glowpoint 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, Cover-All Technologies ( COVR) was up $0.04 (3.5%) to $1.19 on light volume. Throughout the day, 5,000 shares of Cover-All Technologies exchanged hands as compared to its average daily volume of 12,900 shares. The stock ranged in a price between $1.15-$1.20 after having opened the day at $1.19 as compared to the previous trading day's close of $1.15.

Cover-All Technologies Inc., through its subsidiary, Cover-All Systems, Inc., licenses and maintains software products for the property/casualty insurance industry in the United States and Puerto Rico. Cover-All Technologies has a market cap of $31.1 million and is part of the telecommunications industry. Shares are down 8.0% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Cover-All Technologies a buy, no analysts rate 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.

TheStreet Ratings rates Cover-All Technologies as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on COVR go as follows:

  • COVR'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 26.59%, 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 Software industry and the overall market, COVER-ALL TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 45.78% is the gross profit margin for COVER-ALL TECHNOLOGIES INC which we consider to be strong. Regardless of COVR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, COVR's net profit margin of 3.29% is significantly lower than the industry average.
  • COVR, with its decline in revenue, slightly underperformed the industry average of 8.2%. Since the same quarter one year prior, revenues slightly dropped by 1.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • COVR's debt-to-equity ratio is very low at 0.18 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 0.94 is somewhat weak and could be cause for future problems.

You can view the full analysis from the report here: Cover-All Technologies 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.

LookSmart ( LOOK) was another company that pushed the Technology sector higher today. LookSmart was up $0.02 (3.1%) to $0.73 on light volume. Throughout the day, 6,871 shares of LookSmart exchanged hands as compared to its average daily volume of 12,100 shares. The stock ranged in a price between $0.71-$0.75 after having opened the day at $0.71 as compared to the previous trading day's close of $0.71.

LookSmart, Ltd. provides search and display advertising network solutions in the United States, Europe, the Middle East, and Africa. LookSmart has a market cap of $4.1 million and is part of the telecommunications industry. Shares are down 0.7% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate LookSmart a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates LookSmart as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on LOOK 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 36.8% when compared to the same quarter one year ago, falling from -$0.95 million to -$1.30 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, LOOKSMART LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 67.43%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 27.77% 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.
  • LOOKSMART LTD's earnings per share declined by 27.8% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, LOOKSMART LTD continued to lose money by earning -$0.93 versus -$1.92 in the prior year.
  • LOOK, with its decline in revenue, underperformed when compared the industry average of 9.3%. Since the same quarter one year prior, revenues fell by 20.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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

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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